MANAGEMENT
WORKSAFE
NEWS
Kiwifruit growers to wave the flag for New Zealand. PAGE 28
You may have heard that noise could be a problem. PAGE 38
Fonterra’s billiondollar Beingmate bungle? PAGE 12
TO ALL FARMERS, FOR ALL FARMERS JUNE 19, 2018: ISSUE 655
www.ruralnews.co.nz
MANAGEMENT
WORKSAFE
NEWS
Kiwifruit growers to wave the flag for New Zealand. PAGE 28
You may have heard that noise could be a problem. PAGE 38
Fonterra’s billiondollar Beingmate bungle? PAGE 12
TO ALL FARMERS, FOR ALL FARMERS JUNE 19, 2018: ISSUE 655
www.ruralnews.co.nz
M.bovis bill coming!
BUTT OUT! SUDESH KISSUN sudeshk@ruralnews.co.nz
PAM TIPA pamelat@ruralnews.co.nz
FARMERS WILL likely pay a special levy for the M.bovis response, but separately from the increased levy now being proposed by Beef + Lamb New Zealand (BLNZ). How much the industry will contribute to the M.bovis response is being negotiated by the Government, B+LNZ and DairyNZ under the Gov-
ernment Industry Agreement (GIA) for biosecurity. The Government will pay 68% of the proposed $886 million cost of eradication over 10 years and DairyNZ and BLNZ will pay 32%. The levy now proposed by BLNZ will be to cover biosecurity activities but not the M.bovis contribution, BLNZ’s general manager policy and advocacy Dave Harrison told Rural News.
“With this levy we are definitely looking to invest more in biosecurity activities with a view to beefing up the resources for onfarm biosecurity and being more proactive in scanning for offshore threats before they get here. “But the cost of phased eradication will be met by a separate levy to be determined by the Government, DairyNZ and Beef + Lamb NZ; all those details are now being discussed under the principles of the GIA (Government
Industry Agreement). “There will be a cost to farmers for the M.bovis response but obviously we don’t know what that is yet until the negotiations have finished on what the industry split will be. “The industry (dairy and beef) will cover 32% of the eradication costs and that will be raised presumably by a separate biosecurity levy or similar. How much that cost will be to farmers depends on what the split is between BLNZ and DairyNZ . “We are obviously looking at the relative sizes of the industries but also what the impact of M.bovis is expected to be on the individual industries. “So that is the ongoing discussion at the moment – what the split is, how it will be raised and the time period.” Agriculture Minister Damien O’Connor has said previously that the full cost of phased eradication over 10 years is reckoned at $886m. Of this, $16m is lost production and is borne by farmers, and $870m is the cost of the response (including compensation to farmers). Most eradication work will be done in one to two years. • Levy increase page 14 @rural_news facebook.com/ruralnews
UK onside
FONTERRA FARMERS have reminded the outspoken Regional Development Minister Shane Jones that the co-op is not a state-owned enterprise. Federated Farmers Waikato president and Fonterra shareholder Andrew McGiven says any restructuring of the co-op “would have to come from within Fonterra”. “The only influence Shane Jones and the Government could have is on dairy industry legislation,” McGiven told Rural News. Speaking at the National Fieldays last week, Jones took a huge swipe at Fonterra, saying it’s time for a restructure and the chairman John Wilson should “catch the next cab out of town”. Wilson, who is up for re-election as a director this year, has been Fonterra chairman since 2012 and a director since 2003. McGiven says Jones’ public call for Wilson to go was unbecoming of a government minister. “It’s not a great way to endear yourself towards the business community and leaders of the country.” Fonterra would not comment on Jones’ outburst. • More on page 3
Britain’s High Commissioner to New Zealand, Laura Clarke, was among the huge crowd of overseas visitors at Fieldays. She told Rural News that the UK is a big champion of a NZ/EU free trade agreement, for which negotiations begin this week. Clarke says Britain views such a deal as complementary and when the UK is free to negotiate an FTA of its own, NZ will be top priority for a deal. – More from Fieldays pages 3, 5
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RURAL NEWS // JUNE 19, 2018
NEWS 3 ISSUE 655
FIELDAYS POSITIVE
www.ruralnews.co.nz
NEWS ��������������������������������������1-18 AGRIBUSINESS ��������������� 20-21 MARKETS ��������������������������22-23 HOUND, EDNA ���������������������� 24 CONTACTS ����������������������������� 24 OPINION ����������������������������24-27 MANAGEMENT ��������������� 28-31 ANIMAL HEALTH ������������32-35 MACHINERY AND PRODUCTS ���������������������� 36-39 RURAL TRADER �������������������� 40
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 80,580 as at 30.09.2017
Mouth of the north! PETER BURKE peter b@ruralnews.co.nz
REGIONAL ECONOMIC Development Minister Shane Jones enjoyed a friendly chat with the Irish Ambassador Breandan O Caollai at Fieldays, the pair renewing their friendship made at this year’s Waitangi Day. But although Jones got Irish eyes smiling, his charm didn’t extend to
Fonterra chairman John Wilson, who on the same day suffered a pitbull-type verbal attack by Jones. Jones said he was “fed up” with the dairy giant believing it is bigger than it really is. He claimed Fonterra has become disconnected from farmers and said Wilson should “catch the next cab out of town”. And Jones’ broadside was aimed
at more than Fonterra; he also took a swipe at KPMG, host of the function he was speaking at. “KPMG’s ability to pronounce Maori words is hopeless: they mangled [Associate Minister of Agriculture] Whaitiri’s name. One day, when Maori agribusiness grows in wealth, maybe they will pronounce those names as good as the late Howard Morrison did,” he said.
CONCERNS ABOUT Mycoplasma bovis don’t appear to have hit farmers’ enthusiasm for Fieldays. Agriculture Minister Damien O’Connor told Rural News on the first day of the event that he detected a very positive mood. A total of 24,633 visited on day one to see the 1400 sites in this 50th year of the farming event now recognised as world-leading. “For a start, the sky hasn’t fallen in with advent of the new government. I have been amazed at the number of people here,” O’Connor says. The better payout has helped and people are enjoying getting out to see what is always a better event because they try harder every year to improve things.” Waikato farmer John Kneebone, a co-founder of the Fieldays Society, remarked to Rural News on the “amazing evolution” of Fieldays and said it never occurred to him in 1968 that it would become what it is today. Farmers, exhibitors of equipment and services, and politicians of every hue have made Fieldays a mustattend on their ‘press-the-flesh’ calendar. – Peter Burke
Truckies baulk at Alliance’s slow play NIGEL MALTHUS
ALLIANCE GROUP should be “named and shamed” for its deliberately long delays in paying money due to truckers, says Road Transport Forum chief executive Ken Shirley. Shirley accuses Alliance of tactics similar to those of Fonterra -- withholding payment of truckers’ invoices until 90 days have elapsed after the end of the month when the invoice
falls due. Fonterra copped a lot of criticism for the practice and backed down. Shirley says stock truckers are already facing many pressures. “So the stock transporter has to pay the wages, the fuel [bill], the road user charges, run the business – and doesn’t get paid until 90 days after the invoice is due. That’s totally unacceptable,” he told Rural News. Shirley says “good on” Fonterra for backing down, but “bad on them” for
doing it in the first place. “My information is that Alliance is still doing this and it’s time they were named and shamed.” Alliance’s group procurement manager Joost Habing told Rural News that the company altered its payment terms several years ago and had informed its goods and service suppliers about the changes. “Previously, we had a myriad of payment terms in place and the standardi-
sation was part of a wider programme to improve the efficiency of the cooperative and look after the interests of farmer shareholders. “We were careful to provide sufficient notice to allow businesses to adjust their own practices. The change did not affect payment terms to farmers for the supply of livestock to the co-operative.” • See stock cartage rates to rise page 4
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RURAL NEWS // JUNE 19, 2018
4 NEWS
Stock cartage rates likely to rise NIGEL MALTHUS
FARMERS WILL not get stock moved if trucking companies do not get better freight rates, according to the Road Transport Forum (RTF). “We’re at the point where people won’t get stock moved; something has to give here,” Ken
“We’re at the point where people won’t get stock moved; something has to give here.” Shirley, RTF chief executive told Rural News. “All these additional biosecurity conditions and precautions we accept are necessary, but
someone has to be prepared to pay for them and surely that’s the primary sector’s problem.” Shirley says Mycoplasma bovis has brought
matters to a head but the undercurrents have been “festering sores” for many years. He says stock trucking is fiercely competitive, with prices constantly being driven down almost to the point of negative return on equity. “Many stock transport companies are in dire
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Additional biosecurity precautions are putting pressure on trucking costs, according to the RTF.
trouble.” Farmers now insist trucks must be cleaned and sanitised before entering a farm but that can take several hours. “Normally it might be done at the end of the day after many runs. But if you have to spend two or three hours between each run sanitising your truck that’s a huge cost and farmers don’t want to pay for it,” Shirley says. Meanwhile, stock truckers have recently come under fire for dumping effluent alongside rural roads in Waikato, but Shirley believes farmers, meat companies and local authorities have all contributed to longstanding effluent management issues. He says the stock trucking firms agreed 20 years ago to fit effluent tanks on all trucks. But farmers were also party to that, agreeing through Federated Farmers to stand their stock for four hours before trucking, to minimise effluent volumes; and councils said they would provide a net-
work of disposal dumps. Shirley points to “woeful disregard” of those agreements. “We end up carrying the can as an industry for the waste products of the primary industry, which of course aren’t generated by us.” Each truck can carry about 45 cattle beasts, each producing 10L of effluent an hour. “The same local bodies that are very tardy putting in the effluent dump sites then issue prosecutions under the Resource Management Act for the stock truck effluent. When the tank’s full it has to go somewhere.” Shirley says farmers don’t want truckers to dump effluent or empty their tanks on farm paddocks. “On delivery the meat companies don’t let truckers dump effluent into the oxidation ponds at the meat works. And local councils are very reluctant to put in effluent ponds and all around the country there are inadequate numbers. “When trucking com-
panies put in their own effluent ponds to treat the waste of the primary sector they get pinged with all sorts of problems under the Resource Management Act and all the rest of it.” It is a “point of real contention,” said Shirley. “This needs sorting urgently because although Mycoplasma bovis is not transmitted, or is at very low risk of being transmitted, through effluent, many other serious diseases are.” Shirley says the industry is also concerned about farmers’ low compliance with NAIT. “Some pressure” to record stock movements was put on truckers when NAIT was being developed. The truckers were pleased that the legislation ended up putting the onus on the stock owners, but are now “very disappointed” at poor compliance. “That of course has greatly heightened the incursion risk not only of Mycoplasma bovis but of other known diseases also,” Shirley says.
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RURAL NEWS // JUNE 19, 2018
NEWS 5
UK’s support will ice NZ’s trade cake PETER BURKE peterb@ruralnews.co.nz
BRITAIN’S TOP diplomat in New Zealand strongly supports an NZ/EU free trade agreement. Negotiations for this hoped-for FTA begin this week in Wellington. UK High Commissioner Laura Clarke told Rural News that the UK has championed an NZ/ EU free trade deal, seeing it as complementing such a deal with Britain. She says when Britain is free to negotiate an FTA of its own (after Brexit), NZ will be top priority for an FTA deal. Formal negotiations
EU ambassador Bernard Savage at Fieldays.
for an NZ/EU FTA will begin when a delegation headed by EU Trade
Commissioner Cecilia Malmström arrives on Thursday. They will sit
down with Trade Minister David Parker and other ministers. Officials from the EU and NZ will also meet then to set the agenda for detailed negotiations in Brussels in July. UK High Commissioner Laura Clarke says Britain supports such a deal because of its strong links with NZ -- “people links, business links, trade links”. “We want to make the most of those. We already have trade policy dialogue between the UK and NZ so we are looking to prepare the ground for a post-Brexit trade agreement with NZ,” she says.
WORKING HARD ON A DEAL THE EU has done a lot of pre-planning for the start of FTA negotiations, says the EU ambassador to NZ. Bernard Savage, who spent a day at Fieldays, told Rural News that papers have been prepared and exchanged and he expects the FTA negotiations to be “fairly intense”. “People ask how quickly will we finish the talks, but I always say the objective is not to finish quickly but to get the best deal possible as quickly as possible. “A lot of scoping has been done, we have had regular trade talks and so we have a lot of themes on which we will be negotiating formally. We are all familiar with the issues.”
Important to the FTA negotiations will be getting feedback from farming groups, business councils, exporters, chambers of commerce and the wider community including non-government organisations. “That is very important; we are not doing this in a vacuum. The object is to improve trade between the EU and NZ – also jobs, regional development and labour standards -- so we need maximum input. “We are open to hearing from anyone who has a cogent view on where we should be going.” Savage says while the formal meeting between Commissioner Malmström and NZ ministers is impor-
tant, so is getting feedback from interested parties. Agriculture Minister Damien O’Connor is also upbeat about the prospects of securing an FTA with the EU. He says NZ has worked hard preparing for the negotiations and has adjusted its trade agenda -- a positive move in the eyes of the EU. “It’s trade for all,” O’Connor says. “We appreciate that the benefits of trade have to filter right through to everyone and not remain at the top. I think that’s what the Europeans have been wanting to hear, so that when we negotiate it’s for the good of all the people in all the countries.”
Meanwhile, Ireland’s Ambassador to NZ, Breandan O Caollai, is also optimistic about NZ getting an FTA with the EU. The prospects of a deal are very good, he says. The EU depends on trading with other partners and, from Ireland’s point of view, trade with NZ will be important to Ireland after Brexit. Although some conflicts will arise, everyone gains more out of free trade agreements than they lose, he says. Free trade is the way the world global economy works and it works very well for Ireland and NZ. “Issues will need to be ironed out, but the overall prospect favours an FTA; the opportunities will outweigh the difficulties and there is determination to make sure this FTA goes through,” he told Rural News. “The EU will be anxiously looking to other parts of the world to make sure the trade bloc maintains its strength.” Ambassador O Caollai says the whole future of agriculture in the EU is a very political issue, but he notes that Ireland is progressive and depends less on agriculture than previously. “Overall, the thrust of Ireland is for free trade.”
Brexit shapes up BRITAIN IS making gradual progress on its planned exit from the European Union, says the British High Commissioner to NZ, Laura Clarke. A critical thing now sorted is an agreement on an implementation period following Britain’s exit in March 2019. This will allow Britain to remain a member of the European common market and customs union. Clarke says that provides certainty and continuity for business while the exact shape of Britain’s relationship with the EU is worked out. An issue of concern is whether there will be a ‘soft’ or a ‘hard’ border between Northern Ireland and the Irish Republic. The EU and the British and Irish governments are clear that there cannot be a ‘hard’ border, so they must innovate to resolve this, Clarke told Rural News. The UK and the EU are committed to making a success of this new arrangement, she said. “We are not leaving Europe; we are leaving the European Union. “We are still planning to have the closest possible trade relationship and security partnership with the EU and we are working to that end.” Clarke says massive trade is done across the ‘invisible’ border and everyone needs to make sure that trade across the UK and all of the EU is as frictionless as possible. Concerns about the northern/southern Ireland border issue have often been raised by the Irish Government and business and farming groups in the republic. Ireland’s ambassador to NZ, Breandan O Caollai, acknowledges Britain’s assurance that it will support a ‘soft’ border between northern and southern Ireland. All parties are determined to make that work, he says. It is in the interests of farmers and agribusiness people in Northern Ireland for a border not to exist. That is how the economy of Ireland -- an island -- has grown for the 20 years since the Good Friday Peace agreement of 1998. Agriculture has benefitted hugely from the border being permeable -- you can go back and forth. Everyone sees it as a reality that farmers can produce livestock in one region, process it in another and export it to the island of Britain. – Peter Burke
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RURAL NEWS // JUNE 19, 2018
6 NEWS
Boomer year ahead for sector? PETER BURKE
M.BOVIS IMPACT?
peterb@ruralnews.co.nz
THIS YEAR promises to be among the best for agricultural exports: a predicted $42.6 billion – up 11.8% on last year. MPI’s Situation and Outlook Report released at Fieldays shows dairy exports up by 13.6%, meat and wool 12.4%, forestry 15.8% and horticulture 6.4%. The acting deputy director-general of policy and trade, Jarred Mair, says the report tells of broad growth in the value of exports and a transition from the past. It’s exciting news for New Zealand, the report showing the crystallisation of a lot of work by a lot of people in a lot of industries. “It’s an outstanding achievement for everybody. We are seeing the growth in all sectors,” Mair told Rural News. In the dairy sector, for example, there is a great story of infant formula to China growing 50% in a year. Horticulture is an ongoing success, as Rural News has reported for the last three years, and it continues at pace.
M.BOVIS is briefly mentioned, the report noting the eradication plan. It comments that even if the disease spreads across NZ, the impact on total beef and dairy production will likely be low. But Mair says regardless of the outcome of the eradication programme farmers will have to change their farming systems. “They will have to look closely at how they manage in farm biosecurity and how they expose themselves to risk. That will change the NZ farming systems, as publicly signposted in speeches by the Minister of Agriculture and MPI officials.” The report says if no action was taken to stop the spread of M.bovis it could affect 40% of NZ farms within ten years.
NZ obviously has a few issues with wool, but lamb and beef are holding up well. And forestry is also booming, logs especially. Mair says the recovery of the dairy industry is a success story: exports are up $2b over the previous year despite the drop in cow numbers and challenging weather. Butter, AMF and WMP contributed much. Beef and lamb prices have held up well, but while lamb is doing well, it still gets little space in supermarket freezers. “Lamb is very sensitive on price. When it reaches a certain high point people will suddenly [swap into] other
Rural News Pioneer 500 Value Pack - Testimonial Ad_June.indd 1
products. Lamb is becoming a highquality, luxury food and the more NZ does to position it in this space the better.” Notably, high-end consumers are found keenly interested in animal welfare issues, the first time this has appeared in MPI research, Mair says. “In the past, the focus was very much on taste and appearance.” This means how NZ produces matters a lot. Discerning consumers are preferring ‘free range’ production systems over ‘industrial’ systems where animals are housed indoors. And consumers will begin to watch what we feed our animals because that can affect the taste of meat.
Infant formula growth to China has increased 50% in a year.
New pasture species, especially herb mixes, are being introduced to the NZ farming system but these must be used carefully so as not to affect the taste of the meat, Mair says. “For example, it is said that while lucerne is a great feed for animals,
they should be kept off it for at least three weeks before slaughter because it adversely affects the flavour of the meat. “The use of Ecotain, a plantain species that reduces nitrogen leaching, is seen as positive for NZ farming.”
RURAL NEWS // JUNE 19, 2018
NEWS 7 Horticulture rumbles on HORTCULTURE RUMBLES on and has huge potential due to massive investment in the industry, the report says. Hort exports are now $5.4 billion, but are expected to top the magical $6b mark in three years; kiwifruit, wine and apples and pears are the big growth contributors. The report also notes developing new avocado orchards in Northland,
the rise and rise of Gold kiwifruit especially in Bay of Plenty, new apple plantings in Hawkes Bay, more stonefruit plantings -- mainly cherries in Central Otago, and more growth in viticulture in Marlborough. “Two million apple trees were planted in the last four years and we have a massive 700ha of kiwifruit to come on top of 500ha that have just gone in,” says Mair.
THE FANTASTIC FRINGE FOR JARRED Mair, a report highlight is the rapid rise of ‘other’ (fringe foods), now ahead of seafood as an export earner for NZ. “The fringes are really, really interesting,” Mair told Rural News. “Innovative foods have gone up 200% in the last seven years. That is phenomenal... over $800 million a year in exports.” Three key markets exist for these products: Australia, Singapore and Hong Kong. Mair says this points to transformational change in the NZ food sector, enabled by the harmonisation of our food standards and food systems. “All this is starting to highlight the transition the country is going through. We are seeing a reduction in dairy cow numbers, but despite the reduction there is still significant growth in the value of the dairy products we export. “We are seeing broad-based increase in profit and starting to see high value products growing in revenue share. That is an outstanding story and we hope we can accelerate that over the coming years.”
Minister lays out challenges for sector PETER BURKE peterb@ruralnews.co.nz
THE WAY New Zealand takes on challenges and opportunities will shape the future of our food, fibre and timber industries, said Agriculture Minister Damien O’Connor at Fieldays last week. Developments in farming technology, environmental pressures and the expectations of consumers and the public are constantly evolving -- faster and faster, he said. “Developments in the technology of precision agriculture techniques and e-commerce are sure to open doors for NZ farmers. “But synthetic (plant-based) meat and milk might also lead to disruptions which could challenge our beef and dairy industries,” O’Connor told agribusiness leaders. “We all know that improved environmental management is not
optional. Consumers at home and worldwide are demanding environmental credentials and we need to be part of that conversation or be left behind. Together we can do anything, but we can’t do everything.” He says NZ can only feed about 40 million people and, for example, Vietnam alone has 95 million consumers who want food and fibre. So it’s time to get closer to our consumers and work smarter, not harder. He believes that moving up the value chain will require getting closer to customers to understand what they want and what motivates them. “Research says that consumers are willing to pay more for products they trust and value. Products with a story that resonates with consumers backed up by credible assurances will maintain and grow NZ’s global market position.” O’Connor says primary sector faces a big challenge in the need to build
capability, i.e. get people to work in the myriad jobs the sector offers. “The sectors and government need to work together to attract new skills and talent and provide academic leadership to cultivate the next wave of the workforce,” he says. “One example of this is the work MPI is doing alongside industry bodies and farmers to understand dairy farmers’ motivation for seeking professional advice.” O’Connor says he insists that when policymakers sit down to design the rules they take into account the unique factors that affect rural communities, such as low population density, isolation and reliance on the primary sector for employment. Not surprisingly the minister also said a few words on the importance of biosecurity: that NZ needs widespread understanding of biosecurity and that it must become a reflex action and something everyone wants to do.
6/06/18 9:54 AM
RURAL NEWS // JUNE 19, 2018
8 NEWS
M.bovis a long haul with fingers crossed MARK DANIEL markd@ruralnews.co.nz
EIGHTY CALVES set out on their journey to the petfood factory as farmers and agri people met recently at Morrinsville to discuss Mycoplasma bovis. Biosecurity New Zealand’s director of
response, Geoff Gwyn, a veteran of 70 such meetings, told 500 farmers and industry people, “If you’re looking for certainty I’m afraid you’re going to be disappointed”. Gwyn said MPI was doing all it could with 300 staff making progress. Last month 136
Geoff Gwyn
properties were under a notice of direction. Seventy properties had had restricted place notices since the disease was identified in July 2017, meaning no movement of stock on or off the site. Of these, 15 had since had that status revoked and the disease had been confirmed on
36 properties. Culling of 24,500 cattle had gone ahead on 27 of those farms. Eight such properties had since July 2017 had the status revoked as they now met the 90-day non-stocking period. The meeting included an expert panel that defined good biosecurity practice, e.g. restricting
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access points to the farm and providing disinfectant footbaths for visitors. Audience questions centred on the practicality of biosecurity, movement of stock trucks and contractors’ plant, compensation and the reworking of the NAIT scheme. A MPI veterinarian emphasised the need to clean trucks, plant and machinery before disinfecting them, and advised the audience to look for signs of mastitis especially at calving and early lactation when animals are highly stressed. Another round of bulk milk testing will be done in the spring. The audience heard that the most likely disease incursion points had been seen as semen, embryos, vaccines, animal feed, machinery and liveanimal imports from Australia. But DNA testing has discounted the liveimport possibility and indicates that the disease is a strain seen in North America and Europe, not that seen in Australia. In a discussion on calf
rearing, untreated milk or colostrum was cited as the second most-likely risk of infection, after animal-to-animal contact. Hence a recommendation to get milk pasteurised or treated with citric acid. Also on calves, farmers were advised to have bobby or slink animals collected from a designated ‘red zone onfarm, possibly inside the tanker loop. Farmers were told to find out where lease bulls come from, isolate them on arrival and discover the pedigree of the supplier rather than the animal. Agriculture Minister Damien O’Connor told the meeting, “We have one chance, so let’s take it”. The incursion is a wake-up call for everyone and all should embrace NAIT so that it works as intended, he said. Modelling suggested infection on about 190 of the 20,000 properties in NZ, costing about $880 million in compensation -- 68% from the government and 32% from farmer levies.
Pet days a goner? M.BOVIS’ IMPACT may soon reach beyond the farmers whose herds will be culled at an estimated cost of $886 million. Now the annual rural school pet days face being cancelled due to the risk of spreading the disease. DairyNZ and Beef + Lamb New Zealand have recommended that farmers and their children do not take part in calf days. BLNZ general manager David Harrison acknowledges the calf days are a low risk because the number of infected farms was relatively small – about 90 possible infected farms out of 20,000. But he says all risks of spreading infection need to be considered, including pet days. “You need to ask yourself whether you want to bring calves together, intermingling and increasing your risk. Some schools are looking at bringing in lambs instead.”
RURAL NEWS // JUNE 19, 2018
NEWS 9
Chinese eggs not all in one basket – Fonterra SUDESH KISSUN sudeshk@ruralnews.co.nz
CHINA’S DIGITAL world is second to none, but Fonterra isn’t putting all its eggs in one basket in selling fresh and packaged food. Fonterra chief operating officer global consumer and foodservice Lukas Paravacini says the co-op is embracing e-commerce and traditional brick-and-mortar as its sales strategy. Speaking at a recent New Zealand China Business Council conference in Auckland, Paravacini outlined lessons Fonterra has learned over the last five years while building a $3.4 billion business in China. “We have a strategy for our consumer business in China that gives us opportunities online and offline,” he says. About 55% of the coop’s consumer business in China is online; Fonterra has arrangements with two big digital players, Alibaba and Tencent. Fonterra’s Anchor UHT milk is also available in 13,500 stores throughout China.
“Our strategy is online and offline; we don’t have our eggs all in one basket -- and it is working,” says Paravacini. Anchor milk is the top imported UHT brand offline and online. Paravacini says it’s “an incredible success story: we are in the top five beverage of Alibaba’s Tmall flagship store,” he says. “This is putting Anchor among the top consumer brands in China next to the big players who have been operating in China for years.” Internet use in China is booming: 770 million Chinese use the internet and last year 300 million people ordered meal deliveries online worth US$32b. Interestingly, only 2% of total fresh food, by value, is sold online and 4% is packaged food. Fonterra’s dairy products fall in these two categories. Paravacini says food safety is very important to Chinese consumers. “They still want to touch and feel their food before they buy it.” Fresh food sales in
China topped $25b and remain a fast-growing category; large digital players are seeking growth opportunities. Paravacini says e-commerce is driving the coop’s growth in China and
is an opportunity all NZ businesses must seize. He says the co-op is using digital technology sales, branding and direct consumer engagement. But digital is more than just sales; Fonterra uses
online consumer data to drive sales and digitalise its business. Paravacini says Chinese consumers love NZ products and will pay a premium for products they can trust.
Lukas Paravacini
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FROM PRISON TO PRIMARY SECTOR THE MAN who for five years has led the work of keeping New Zealand’s most dangerous citizens behind bars will soon be charged – among other things – with keeping the nastiest pests from breaching our borders. In a raft of public service moves earlier this month, State Services commissioner Peter Hughes has appointed Ray Smith, currently chief executive of the Department of Corrections, as director-general of primary industries and chief executive of the Ministry for Primary Industries for five years from November 1, 2018. Smith will replace director-general Martyn Dunne who will retire at the end of October. “Martyn Dunne will retire after 50 years of public service,” Hughes said. “He has held notable roles, including a distinguished military career, two years as New Zealand High Commissioner to Australia and the last five years as director-general of primary industries. I thank him for his dedication, his leadership and his service.” The State Services Commission website discloses that public service chief executives are appointed for a term of not more than five years and can be reappointed for a second term, but not for longer than eight years.
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RURAL NEWS // JUNE 19, 2018
NEWS 11
Rabbits not dying like flies! NIGEL MALTHUS
SCIENTISTS SAY although the new rabbit calicivirus is working as expected, farmers are not seeing the knockdown they may have hoped for. The new strain of rabbit haemorrhagic virus disease, RHDV1-K5, was released several weeks ago at 150 sites. Manaaki Whenua (Landcare Research) has monitored release sites since then. “The first thing we wanted to know was whether the virus was killing rabbits within 5km of our release sites and that seems to be the case. So far we’ve detected the RHDV1-K5 in carcases at all the research sites,” lead researcher Dr Janine Duckworth told Rural News. However, Otago Federated Farmers president Simon Davies says farmers are generally disappointed with the new virus. “Certainly the feedback from farmers is that they’re disappointed with the result. They were probably expecting more like a 50-60% knock-down and the feedback we’re getting is it’s nothing like that... nothing like that at all.”
Manaaki Whenua intern Florian Chazottier collects flies from a trap set near an RHDV1 K5 virus release site at Glentanner. Photo: MANAAKI WHENUA / BRADLEY WHITE
Davies says his own coastal farm has very few rabbits. But his “personal speculation” is that the virus was released a bit too late in the season when the vectors -- fleas -- were less active. “I think they would like it reasonably warm otherwise they’re not going to be moving from host to host.”
Davies’ neighbour Allan Gunn, whose property is one of the release sites, agrees that the disease appears slow to act. But a particular pair of rabbits he had often seen on his property finally disappeared some weeks after the release. Gunn says he was dubious at first, but the rabbits have since faded away,
although “it wasn’t as quick as the last virus acted”. The new variant is a Korean strain of the one illegally released in 1997; that was described as a Czech variant after it was first identified there. Duckworth says they expected zero to 40% knockdown from the new virus, depending on how many susceptible rabbits were in the area. But there are places where the Czech virus will have recently gone through, giving some immunity. “One of the major differences with this virus release is the rabbits have already seen RHDV type viruses and have built up some antibodies against them, so it’s not going to see the huge 80-90% die-off we saw in 1997; but it will be more effective over time. “When you use a biocide it only affects the rabbits that eat the virus and then they die within one to two weeks. With a natural spread, the infection builds much more gradually but we see a longer period of infection. It will be six to eight weeks that the virus will still be slowly spreading through a rabbit population and we want to see this virus establish and
be here long term as a new biocontrol agent,” Duckworth says. Meanwhile, early data from the monitoring appeared to confirm the Australian experience, that flies are an important vector for the disease. “What we’re not sure about in New Zealand is how far our flies move and how quickly the virus will spread here because we have a different fly population to that in Australia,” Duckworth says. “RHD1K5 has been found in flies around the release sites and some distance away from those sites. So it looks as though the situation is similar to Australia and flies are an important vector for moving the virus longer distances.” She says RHDV spreads either by rabbit to rabbit contact, contact of rabbits with faeces from an infected rabbit or from bedding material. “But it also spreads across the land much faster than it could by rabbit-torabbit contact.” Duckworth says monitoring and research are continuing. Spotlight night counts of rabbit populations are underway and will last for a few weeks.
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RURAL NEWS // JUNE 19, 2018
12 NEWS
Fonterra’s billion-dollar Beingmate bungle? SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA SHAREHOLDERS could end up losing over $1 billion on the co-op’s controversial investment in Chinese infant formula company Beingmate, says business commentator Rod Oram. Oram believes it is “incredibly difficult” to turn around Beingmate and Fonterra’s 18.8% stake will “ultimately be valueless”. He made the comments at a North Asia
Centre of Asia-Pacific Excellence event in Auckland; Oram spoke on “Fonterra’s travails in China”. About 50 people, including former Fonterra directors Greg Gent and Colin Armer, attended. Oram, who has been visiting China as a business journalist since 1979, believes the Beingmate investment, worth $750m in 2015 was a wrong move. He notes that by 2014 Fonterra was in “deep crisis”. It was battling the
aftermath of botulism crisis both at home and abroad; Danone, a large infant formula customer had severed ties leaving its Darnum infant formula plant in Victoria seriously underutilised. Fonterra was also out of the game with its own brand of infant formula in China; desperately needing to build its reputation with Chinese Government and consumers. The solution was Beingmate, with 10% infant formula market share via a vast network
of affiliated retailers. Beingmate was already a Chinese customer for Fonterra ingredients for formulas. Oram says Beingmate’s owner, Sam Xie, saw an opportunity when Fonterra chief executive Theo Spierings offered to buy the 18.8% stake. “They knew Fonterra had to find a major partner to make Darnum economically viable again; Fonterra was eager to overcome its market failure in China with its own infant formula brands;
Business commentator Rod Oram is scathing of Fonterra’s performance around Beingmate.
and Fonterra believed it had to show the Chinese government it was serious about investing locally despite all its setbacks,” says Oram. But Beingmate never became the “gamechanger” that Spierings had envisaged. In fact, Beingmate’s problems were beginning to surface as Spierings and Xie finalised their deal. In March 2015, Beingmate reported that sales fell 17.24% to 5.06 billion yuan, having peaked at 6.11b yuan in 2013; oper-
ating profits fell 89% to 104.4m yuan and net profit attributable to shareholders fell 91% to 65.7m yuan from 721m yuan the previous year. Oram says of the seven strategic objectives Fonterra gave for its Beingmate, only two have borne some fruits; Beingmate is selling Fonterra’s Anmum infant formula but sales have been minimal. Beingmate also took a 51% stake in the Darnum plant but is buying less than its share of the factory output. “The other five strate-
gic objectives simply have not eventuated, simple as that,” says Oram. “Beingmate plunged into loss shortly after Fonterra took its stake; it hasn’t paid any dividends to date so Fonterra has lost out on that.” Fonterra has written down its Beingmate investment from $750m to $244m, a 67% devaluation. Oram says with $120m in debt costs, $28m in share of losses and $48m in lost dividends, Fonterra is “in the hole” by $702m.
QUESTIONS FOR BOARD ORAM SAYS Fonterra was under pressure to make a big strategic investment in China and Beingmate took advantage of the co-op’s position. He says it would be interesting to get a copy of the Fonterra board’s due diligence on Beingmate before its investment – given the company “was already on a slide when Fonterra was taking an
interest in it”. Despite Beingmate failing to deliver on the prospects promised, Oram noted that Fonterra’s board and management had “doggedly stuck” with the company. “It seems Fonterra’s board was hoping for the best, but never prepared for the worst; that question needs to be asked of directors.”
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RURAL NEWS // JUNE 19, 2018
NEWS 13
Co-op defends actions in China SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA SAYS it has been “fully transparent’ about Beingmate’s performance and its impact on the co-op’s financial position. This includes announcing an impairment of $405m at the half year, as well as $28m to account for its share of Beingmate’s losses. “As we’ve said previously, the performance of this investment is unacceptable,” a Fonterra spokesman told Rural News. “Our priority is pushing for an urgent business transformation by working cooperatively with Beingmate’s founder and majority shareholder. “There are a number of opportunities to reverse the business’ current performance, starting with unlocking the distribution network and meeting customers’ preferences for e-commerce.” The first step of the transformation is the appointment of a new and independent chief executive officer, supported by a strong senior management team. Fonterra denied that
Sam Xie has returned to the company as chief executive of Beingmate Baby and Food Company in which Fonterra has a 18.8% stake. Commenting on the strategic objectives of its tie-up with Beingmate, Fonterra says any global company wanting to have a long-term, sustainable business offshore “needs to approach their partnerships collaboratively and strategically”. Fonterra says for its business in China that means sharing knowledge and experience to improve local food safety and quality standards, investing in the local dairy industry as it has with its China farms, and partnering with a Chinese company. “The performance of the Beingmate investment has clearly been disappointing; however it has played a strategically important role in enabling us to operate in the China market, where we achieved $3.4 billion in sales revenue last year.” Fonterra also refuted claims that it had been taken for a ride by Beingmate founder Sam Xie. “Doing business with China has always come with unique challenges
and Beingmate’s performance has been clearly disappointing.” The co-op says its extensive due diligence before it invested in Beingmate drew on internal and external advisors’ expertise. “The due diligence
outlined a number of significant opportunities which continue today,” the spokesman says. ‘It’s important also to view our investment in Beingmate as part of a long-term, strategic plan to grow in the China market.”
Fonterra’s out-going chief executive Theo Speirings was a big promoter of the co-op’s investment in Beingmate.
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RURAL NEWS // JUNE 19, 2018
14 NEWS
Beef + Lamb wants more cash BEEF + LAMB New Zealand (BLNZ) is seeking farmers’ views on its plan to gather a higher levy. If adopted, the higher levy will cost an average sheep and beef farm an extra $260 per year and an average dairy farm an extra $55 per year. BLNZ says it proposes to increase sheepmeat and beef levies to get started on several key programmes: the international activation of the ‘Taste Pure Nature’ origin brand and the ‘Red Meat Story’, helping the sector lift its environmental performance and reputation, telling the farmer story better, and strengthening BLNZ’s capability to address biosecurity risks. BLNZ chairman Andrew Morrison says sheep and beef farmers are facing unprecedented challenges -- environmental pressures, trade issues, the rise of alternative proteins, biosecurity incursions, and eroding public confidence in farming. “But there are strong opportunities for beef and lamb exports if we are able to tell our story. There is growing demand globally for grass fed, hormone free and antibiotic free red meat that consumers are willing to pay a premium for.
“Following feedback from farmers about what is important and what support farmers need, BLNZ has developed a new strategy, re-organised its structure and refocused resources to combat these challenges and realise our opportunities. “So far this year we have launched a range of initiatives aimed at positioning the sector for the future including a report on alternative proteins, the ‘Taste Pure Nature’ origin brand and ‘Red Meat Story’ and a new environment strategy. “However, given the scale and speed of change, we believe a modest increase in the sheepmeat and beef levies is necessary so that we can accelerate these programmes. We see a window of opportunity to get ahead of the curve in these areas if we increase our investment now. “This includes investing more in the roll-out of ‘Taste Pure Nature’. The additional funds would be used to support greater targeted promotion in key markets such as the US and China to capture more value for farmers before alternative proteins gain traction and our competitors cement their positions.
“There is also a risk of significant regulatory change in the environment space. This investment will give farmers the tools to make onfarm changes, measure environmental progress and provide evidence for telling their story. This will help us engage with government to ensure they develop sensible policies.” Morrison says the extra money being sought by BLNZ falls within the range supported by farmers in the BLNZ Commodity Levies Act referendum in 2015. Chief executive Sam McIvor says the proposed levies increase would raise just over $4 million. “We have reprioritised resources over the last two years, allowing us to save about $1.4m. We’ve reallocated those savings to the most pressing issues for farmers. However, to fully realise the opportunities and deliver better outcomes for farmers, BLNZ requires additional investment.” The levy increase consultation will run to July 13; farmers can have their say in a variety of ways. Consultation packs have been sent to farmers’ mailboxes. Farmers will also be able to state
their views at www.beeflambnz. com/levy2018, by attending one of the local meetings that will be held nationwide or by contacting BLNZ directly on enquiries@beeflambnz.com or 0800 233 352. Once consultation has closed on July 13, BLNZ’s board will consider all feedback and notify farmers of the outcome by midAugust. If adopted, the changes will take effect on October 1, 2018. Full details of the levy proposal can be found at www.beeflambnz.com/levy2018
Beef + Lamb NZ chair Andrew Morrison.
LEVY CONSULTATION 2018 Beef + Lamb New Zealand are currently undertaking consultation on a proposal to increase sheepmeat and beef levies to accelerate investment in a range of important programmes.
Come along to one of our local meetings to find out more about the Taste Pure Nature origin brand and Red Meat Story, our recently released Environment Strategy, how we plan to tell the farmer story better, our work on biosecurity, and have your say on the levy proposal. A lot has been happening and we’re looking forward to updating you on the key challenges and opportunities for sheep and beef farmers, what B+LNZ is doing to support you, and how we’re working to help capture greater returns for your sheepmeat and beef. Submissions close 13 July 2018
For more information and to find a meeting in your area visit: www.beeflambnz.com/levy2018
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RURAL NEWS // JUNE 19, 2018
16 NEWS
Product mix based on profitability PAM TIPA pamelat@ruralnews.co.nz
DESPITE HIGH fat prices it is now more profitable for Fonterra to make whole milk powder than butter and skim milk powder, co-op chairman
John Wilson says. “Skim prices are low and fat prices are high,” Wilson told the Jersey NZ conference. “When companies are thinking about how they optimise their product mix to maximise their
returns they are thinking not only about that fat component. “They are thinking about that other bucket of milk – the value of the bucket of milk in Europe, for example. During the recent past, skim and
butter have not been the most efficient product mix. The most efficient product mix has been cheese.” Wilson says European manufacturers have been more inclined to use their marginal milk
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Fonterra’s John Wilson says despite high fat prices it is currently more profitable for Fonterra to make milk powder than butter.
to produce cheese rather than skim and butter even though butter prices are high. “That is creating a shortage of butter and fat products. “In New Zealand now it is far more profitable for us to produce whole milk powder than the skim and butter mix. “We will produce butter for our own businesses and key customers if the price mechanism is right, but in general with marginal milk that is not the preferred product mix.” This changes regularly and three months ago it was different, he says. “That gives you some perspective on whether it is purely demand-driven or partly because of the ratio today between skim versus butter.” Wilson says pleasingly, although a little bit belat-
“When companies are thinking about how they optimise their product mix to maximise their returns they are thinking not only about that fat component.”
edly, the European Commission is now selling skim intervention stock into the market. “They are taking quite a significant loss on it but there has been about 50,000 tonne [sold] over the last three or four weeks after a peak of about 387,000 tonnes. So we are starting to see some of that skim sold out of intervention. “What they do over the next 12 months will be very interesting although they have said they are not taking any more product into intervention.”
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NZ Fonterra skim is now selling for about $200 - $400/tonne more. Wilson says the value component ratio is one of the ways Fonterra reflects the value of the different milk coming off NZ farms. “We do it through a number of different mechanisms. We reflect transparently the cost of processing peak milk, the cost of processing low solids versus high solids milk and the value in the marketplace of fat and protein.” @rural_news facebook.com/ruralnews
RURAL NEWS // JUNE 19, 2018
NEWS 17 TIMELY STORY ON DAIRY FAT PAM TIPA pamelat@ruralnews.co.nz
TIME MAGAZINE on a front cover in 2014 broke the news that butter was back, says Fonterra chairman John Wilson. The headline was ‘Eat butter’. “From our perspective as farmers we could not have asked for a better advertisement. It is extraordinary the impact that
that one image had on our product.” It followed years of science saying that dairy fat was a villain in human health. But the Time article didn’t happen by accident, Wilson told a Jersey NZ conference in Whangarei. “It was based on research we commissioned at Harvard University,” he says.
The Time article reported fat as being the most vilified nutrient in the American diet, but scientific evidence showed it did not harm health or cause weight gain if eaten in moderation. Leadership by Fonterra drove some of the shift in attitude, Wilson says. “We work with the other major dairy cooperatives Friesland Campina, Arla and
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WESTLAND MILK Products is promising better things for the 2018-19 season, while conceding that this season’s payout will be disappointing. Westland, New Zealand’s second-biggest dairy cooperative, predicts its payout to shareholder suppliers will be in the range $6.75 to $7.20/kgMS for 2018-19. The figure is in line with payout predictions of $7.00 from Fonterra and Synlait. WMP chairman Pete Morrison says the shareholders will welcome the prediction; they are anticipating a payout in the range of $6.10 to $6.30 for 2017-18. “This (17/18 payout) is a disappointing result – as it is not as competitive as we had originally told shareholders we would be,” Morrison said, “but a number of oneoff factors contributed to this.” They included the impact of former-tropical cyclone Fehi, estimated to have cost at least 10c/kgMS. Lyttelton Port strikes added to the cyclone’s disruption and meant Westland incurred higher freight costs. And quality issues, while now improved, were more extensive than at first thought and took longer than expected to resolve. “We are now seeing improved sales and a better sales outlook; there is a much improved performance by our infant and toddler nutrition (ITN) and UHT plants; and consumer butter has been, and we believe will continue to be, a star performer.” Westland’s decision to enter the NZ retail consumer butter market with its Westgold brand has also paid off, Morrison said. He expects butter to continue to be a good export earner. “We see robust demand for butter in all sectors growing further in the coming year, with grass-fed growth showing even further potential. Westland is in a great position to take advantage of the growing demand for grass-fed dairy products.” To make butter, Westland had to find markets for its skim milk powder and that is also looking promising, he said.
Dairy Farmers of America predominantly…. One of the tasks we set the Global Dairy Trade platform shortly after it was set up about 10 years ago was to look at the science of dairy fat. “They went right back to the science, commissioned new work, had that deeply peer reviewed and then very carefully put that information in the market and the rest is history.”
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says you’re serious.
RURAL NEWS // JUNE 19, 2018
18 NEWS
Should we fear plantbased alternatives? PETER BURKE peterb@ruralnews.co.nz
NEW ZEALAND needs to take a multi-pronged approach to dealing with the perceived threat of plant-based food substi-
tutes. That’s the view of MPI’s acting deputy-general of policy and trade, Jarred Mair, on the findings of a report The Evolution of Plant Protein – Assessing Consumer
Response by MPI and Plant and Food Research on alternative proteins. He says food substitutes have been around for ages and while NZ needs to develop its existing primary sectors,
it also must develop new products as part of our export mix to achieve high value at a lower environmental footprint. The report looks at consumer responses to protein and highlights
their potential impacts on NZ agriculture. The aim was to look long term to see what consumers might demand in our products and identify opportunities available to the sector,
MPI’s Jarred Mair
especially in the next five years. The report says consumer preferences and awareness of the consequences of food production is creating a need for new products. It notes the ‘Impossible Burger’ – a plant-based burger patty that replicates the taste, texture and smell of beef. “Companies in NZ, such as Sunfed Meats, are already making these products. They have a pea protein from which products such as ‘chicken-free chicken’ are produced,” Mair told Rural News. “We have the technology and it’s apparently quite easily done. The issue for us is how do we create the consumer demand or create the point of differentiation, where we can sustain the value proposition over the longer term.” Mair believes the move to food substitutes should give NZ food producers opportunity to get into the high end of the food market. NZ should cater for consumers’ cultures and beliefs, and produce superior and novel products for them. He is fascinated by transformational changes taking place in the agricultural sector, notably growing dairy exports despite cow numbers falling, and massive growth in horticulture, especially
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kiwifruit, wine and pipfruit. Mair says NZ has a good track-record in responding to market signals because, like some other countries, it is not encumbered by subsidies and restrictions. “We now have another stimulant that has come into the equation and that will increase over the next decade or so. And how do we respond to that?” Mair forsees more focus on defining products and more targeting of consumers willing to pay for superior products. He says NZ is good at innovation -- small and large companies – as shown in greater export returns during the last year. He believes NZ will respond to the plant proteins issue by calibrating its system to meet consumer needs. “We can’t hide from the question of plantbased proteins. We will have to respond in some way and our point [in the report] is to raise awareness of what is going on. “[We need to start] a debate about what we do now. The best thing we can do for NZ farmers is harness the innovation we have in this country and give them options about what they can do for the future.”
Read us until the cows come home!
www.ruralnews.co.nz
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* Total cost for CFMoto U800 Farm Spec is $18,004.11 paid via three equal instalments of $6,001.37. Total cost for CFMoto U550 Farm Spec is $15,130.10 paid via three equal instalments of $5,043.37. Total cost for CFMoto X500 Farm Spec is $9,954.09 paid via three equal instalments of $3,318.03. The initial instalment is in the form of a deposit at time of purchase. The second instalment is payable after 12 months where the third (final) instalment is payable after 24 months. These totals equate to the cash price including GST plus a $180.60 application/documentation fee and $10.00 PPSR Lodgement (Total charges of $190.60). Total cost is subject to 0% interest rate and applies specifically to these models only. Normal lending criteria apply. Offers end 31st July 2018
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RURAL NEWS // JUNE 19, 2018
20 AGRIBUSINESS
Wool man to lead Canterbury Show NIGEL MALTHUS
A TIMARU wool-broker has been elected the youngest-ever president of the Canterbury A&P Association. Tim Black, aged 44 this year, says he has been involved with the show all his life. “I haven’t missed a show yet,” he told Rural News. It is a real family association, with both his parents also involved. His father Bryce has just retired as its veteran horse-ring marshall, after 70 years with the show. “We’re going to have wool as the focus of the show this year, which I’m really rapt about,” says Black. “It’s a great product and if we can showcase it a bit more, if I can do anything for the industry, it’s all good.” Being “lucky enough” to be the youngest show president, he says he would also like the show to focus on youth. While conceding that the average age of the people involved in the show has risen over the years, Black has seen “a bit of a swing” towards young people being employed in agriculture. “For young people who are involved with the A&P at the moment, it’s looking really promising for the future.” For the third year running, the show will have a live wool auction supported by PGG Wrightson, Carrfields, and NZ Merino. “A lot of people have never seen a wool auction. It’s sold in a different way,” says Black. It is fast and exciting. “You’re actually putting the hammer down after you’ve started the next lot.” Black is also promising big things for a fashion event introduced to the show last year by North Canterbury’s coloured wool expert Bev Forrester. Black says they intend to “make a spectacle of it” this year with international and local designers represented.
Now running his own firm of Black & Associates, Black has worked in agriculture all his life: he went farming straight from school, then studied at Lincoln, then worked as a stock and station agent before his 15 years as a wool auctioneer. He is passionate about wool, saying New Zealand is “still a nation of sheep” despite the drop in numbers. Black says the Merino market is “really good” at the moment, even for second pieces and short wool, which go into the likes of hosiery or fine felting such as for pool tables. The crossbred market, however, is “struggling.” “It’s traditionally been carpet wool. Years ago, you were wealthy if you were able to lay a woollen carpet. Nowadays everyone has a carpet, but it’s not made of wool.” Black notes that only one wool scourer is left in the South Island. Most wool is exported raw and unwashed to Europe or, more commonly now, China. “This is New Zealand crossbred second shear,” he says, indicating a stack of bales at his Washdyke store. “This is the bulk of New Zealand wool and it’s going straight to China, not even getting scoured in New Zealand. It’s not a good thing; we should be looking after our own. But primarily we don’t have end uses for it. It’s not a valuable product. “I’ve been in the industry 20 years and it really has been in decline in that time, especially the crossbred. But the Merino’s picked up; it’s going really well.” Black is experimenting with alternative markets including pillow filling and wool insulation for houses, which he is selling under his own brand. The insulation wool comes back from the scour compressed into bales that are
Timaru wool broker Tim Black has been elected as the youngest ever president of the Canterbury A&P Association.
SKINNING IT!
easily peeled apart for installation in slabs of whatever thickness is needed. Meanwhile, Black believes that one day “the tide will turn” and people will realise wool’s benefits. Every time a jersey is washed it loses fine fibres, which doesn’t matter with biodegradable wool, but the world’s waterways are filling with plastic, he says. Brands such as Icebreaker had done really well in selling Merino to the active-wear market. “It’s a fantastic product. There’s nothing bad about it at all. Buy once, buy well; no-one ever regrets buying quality,” says Black.
ALLIANCE GROUP has shipped its first big meat consignment in vacuum skin tray packaging to Hong Kong. Skin packaging hermetically seals right to the edge of a meat cut, extending its chilled shelf life for up to 11 weeks, retaining its colour and optimising tenderness. The products -- cutlets, saddle chops and chump steaks -- will be jointly marketed under Alliance Group’s Pure South and the Angliss Hong Kong brands and sold in supermarkets, including those owned by the Aeon Stores Group. Alliance Group general manager marketing Peter Russell says the shipment is believed to be the first New Zealand red meat packed at origin to be supplied in skin packs in Hong Kong. “This trial and shipment [show the co-op] providing a more sophisticated offering for our customers and capturing more value for farmer shareholders. “Skin packaging is a good way to display smaller consumer-ready portions. Because of the materials used, skin packaging gives flexibility to package small consumer-ready products in a range of cuts -- chilled, frozen, bone-in and boneless – compared to less-flexible vacuum packaging which is used for larger primal cuts to export wholesale markets.” Russell says Alliance Group has been working on skin pack technology for the last two years. A team visited Hong Kong last year to discuss marketing opportunities with Angliss, he said. “The co-op ran a trial shipment last year with Angliss and their customers were pleased with how they presented. They placed a larger order, so we are looking forward to hearing what the response is from the market. “Our NZ food service team… has other innovations in the pipeline.”
1
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ks
RURAL NEWS // JUNE 19, 2018
AGRIBUSINESS 21
Small does it better elderly, high-end sportswomen, etc.” Campbell says understanding the concerns and needs of consumers is critical for NZ. For example, UK consumers are more concerned
about animal welfare issues, whereas food safety tops the list for Chinese consumers. Consumers go to great lengths to get information about the food they are buying, often via
social media. Campbell says, as a scientist, that she knows NZ must communicate better to consumers the right message about food, and have the scientific evidence to back this up. “This is necessary at a time when there are lots of mixed messages about food being touted in the marketplace.”
AbacusBio’s Dr Anna Campbell
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GENUINE INNOVATION in the agriculture sector tends to come out of smaller, not larger, companies, says the managing director of a New Zealand agri-technology company. Dr Anna Campbell runs the science-based company AbacusBio, based in Dunedin and Scotland, consulting worldwide on agri-related matters. She says smaller companies see what opportunities exist in the market and work backwards, unlike big players that tend to work off an existing market. “Big companies are more concerned with profit and loss. “A big company [is after] scale and efficiency and that’s fantastic and what they are good at,” Campbell told Rural News. “But they are not necessarily good at taking themselves out of a hierarchical organisation and being free-thinking and allowing for failure. Good innovative companies have the mindset ‘it’s ok to fail’ -- it’s a different mindset.” She says many larger companies are interested in innovation, but often
Good innovative companies have the mindset ‘it’s ok to fail’.
IN
peterb@ruralnews.co.nz
their response is to buy up the smaller innovative companies and absorb them into their conglomerates. Campbell claims a lot of the government drive in NZ targets our big exporters, not necessarily our small innovators, and she believes we need to start supporting our small innovators more. This is especially important now because of an international backlash against livestock and its place in the environment. “But NZ has farming systems different from the rest of the world and we don’t appreciate that. We can do more on this connection between food and health, which is what our systems are about,” she explains. “Consumers are going to have a lot more data; and how do we match the product to the right consumers? That requires R&D at a product level and at consumer level.” Campbell says Zespri has done a lot of great work in proving and publicising the health attributes of green kiwifruit, and she believes other industries should follow its example. “There is still basic research that could be done, particularly on red meat products... and their impact on, say... the
MA DE
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agricultural history
of deposits fund New Zealand agribusiness
RURAL NEWS // JUNE 19, 2018
Rabobank supports clients from farm to fork in
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farmers to connect Content supplied by Rabobank – Grow with the bank farmers for farmers with by worldwide , founded 12630
22 MARKETS & TRENDS
global agribusiness research analysts sharing market outlooks
Outlook holding firm Dairy WEATHER AROUND the country continued to improve during April and New Zealand milk production followed suit. National milk supply lifted 3% for April 2018 compared to the prior year. Season-to-date milk production is track-
ing only slightly behind the prior season (-0.1% YOY). The recovery in milk production over the last few months suggests New Zealand milk production for the 2017/18 season is likely to end up flat on last season. Total milk collections for 2017/18
Dairy commodity export prices
year will likely end up around 21.4m tonnes of milk – the third-highest of New Zealand milk production level. Stronger milk flows for the second half of the season were supported by improved weather conditions, underpinning a solid finish to the season. The opening milk prices for New Zealand milk processors have been announced and the forecasts are pointing towards another profitable season.
Beef
Source: USDA, Rabobank 2018
AFTER FALLING steadily during April, schedule prices held relatively steady through May, as the slide in US imported beef prices came to a halt, and domestic cow numbers began to tighten. As at the start of June, the
North Island bull price
shifts away from cows towards more prime cattle through June, demand in the key Asian markets will become increasingly important. While Chinese demand is still holding firm, stiff competition in Korea and Japan continues to have a negative impact on prime cut exports into these two markets.
Sheepmeat Source: NZX AgriHQ, Rabobank 2018
North Island bull price was 2% higher MOM, averaging NZD 5.25/ kg cwt, with the South Island bull price down 1% MOM, averaging NZD 4.90/kg cwt. Prices in both islands are 5% lower than they were at this stage last season. With US importers aware that supplies of New Zealand manufac-
turing beef will start to significantly slow down once the seasonal dairy cull ends in early June, the US imported beef price has lifted slightly from where it was late April. With the US entering summer, their domestic beef consumption will peak over the next month. However, further out there are still poten-
tial headwinds, with continuing dry conditions making some degree of forced liquidation of the US cow herd likely around August. Should this occur, the increased US domestic supply will reduce their need for New Zealand’s imported product. As New Zealand production progressively
SCHEDULE PRICES continued to edge higher during May on the back of a seasonal slowdown in the number of lambs available for slaughter. As of the start of June, the slaughter price in the North Island averaged NZD 7.55/kg cwt (3% higher MOM), while South Island lamb averaged NZD 7.35/kg cwt (4% higher MOM). With the peak of the
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RURAL NEWS // JUNE 19, 2018
MARKETS & TRENDS 23
COUNTRIES
Content supplied by Rabobank – Grow with the bank founded by farmers for farmers South Island lamb price
upward price movements throughout June.
Wool
Source: NZX AgriHQ, Rabobank 2018
seasonal kill now over, the supply of lambs will continue to tail off between now and season end in September. This should ensure there is enough procurement pressure to support some further upward price movement. While New Zealand’s overall 2017/18 lamb kill is currently very similar to where it was this time last season (+0.8%), there is a clear split between kill numbers for the North Island (+8.6%)
and South Island (-5.3%). With Rabobank expecting the total 2017/18 kill numbers to be approximately the same as last season, this would indicate there is higher proportion of lambs still to come forward in the South Island. With processors in the South Island facing less procurement pressure, this could widen the gap between North and South Island schedules. Rabobank expects the declining lamb supply to support continued
GUTTERING & DO W N P I P E
THE MERINO wool market has rewritten record books in Australia in May, with the Australian Eastern Market Indicator lifting four straight weeks to break through AUD 2,000 cents clean/ kg in the last sale week for the month. Wool broader than 30 micron remains more subdued in comparison, reflected in the NZ wool market. However, coarse crossbred wool has also started to lift and managed to sustain these gains through the month. In May, the coarse crossbred indicator lifted 7% and clearance rates at auction averaged 93%. Crossbred lambswool prices, particularly finer than 30 micron, have seen some positive lifts in prices though the month of May in South Island sales. There have been 25% more bales offered in
the 2017/18 season to date, with the improved clearance rates seeing 40% more bales sold. The poor prices through 2016/17 saw stock accumulation on farm. While conditions for the broad wool market continue to improve, these extra volumes of wool, still making their way to market, continue to limit the upside potential for broad wool driving the divergence between markets above and below 30 micron. China’s import demand remains influential for all ends of the wool market, both broad and fine.
NZ dollar HAVING CONTINUED its recent slide through the first half of May, the NZD recovered against the US dollar in subsequent weeks. By 4 June it was trading at USc 70 – more or less where it started May. The recovery appears to be driven at least in part from
NZ/ US cross rate
Source: RBA, Rabobank 2018
improved global risk sentiment, as tensions between the US and China eased somewhat. In our view, the NZD is likely to trend weaker against the US dollar over the next 12 months. The US Federal Reserve left its target range for the fed funds rate unchanged at 1.75% in May. But there are highly likely to be more rate
NT E C LU S N TRAOFING TRANSLUCENT RO ROOFING
hikes in the pipeline. We expect the US Fed to increase rates twice in the next six months (in June and September): pushing the funds target rate from 1.75% at the end of May to 2.25%. We then expect rates to be on hold for six months at least thereafter. The case for any increase in central bank rates in NZ is far weaker. With monetary policy set
to tighten faster in the US than in New Zealand, Rabobank expects the NZ dollar to fall gradually against the USD over the coming 12 months – reaching US 67 cents by May 2019. • Want to keep up-todate with the latest food & agribusiness insights? Tune into RaboResearch Food & Agribusiness Australia & New Zealand podcast channel.
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RURAL NEWS // JUNE 19, 2018
24 OPINION EDITORIAL
EDNA
Nice idea MINISTER FOR Rural Communities and Agriculture Damien O’Connor last week at Fieldays launched his new Rural Proofing Policy – with great fanfare. O’Connor claims this new policy will make it easier for Government rule-makers to ensure rural communities are at the heart of their decisions. All well and good, but what will it mean in reality? As the minister pointed out at the policy launch, people living in rural communities face unique challenges that must be reflected in Government policy. “This year alone has seen drought, floods and cyclones. We’ve also seen biosecurity incursions such as Mycoplasma bovis cause huge stress in our rural communities,” he says. “The Rural Proofing Policy will ensure that when policymakers sit down to design the rules they take into account the unique factors that affect rural communities such as low populations, isolation and reliance on the primary sector for employment.” O’Connor claims MPI will have an important role in supporting agencies to build their own rural knowledge and capabilities through practical resources, training and getting analysts out to talk to rural communities and businesses. He says the especially relevant areas are connection infrastructure, access to services and the ease and cost of doing business and achieving compliance. Nice words Minister, but getting your Government to actual practise what it preaches on ‘rural proofing’ would be a good start. How much ‘rural proofing’ went into recent Government policies that impact heavily on regional and rural NZ? To name just a few: • Cancelling Crown support for irrigation schemes • Deciding to curtail oil and gas exploration • Refusing to continue funding the Rural Health Alliance of Aotearoa (RHAANZ) • Restricting the right of farmers to sell their land to the highest bidder • Imposing a zero carbon policy and bringing agriculture into the ETS • Scrapping several regional highway projects. How have these decisions contributed to improving rural New Zealanders’ connection to infrastructure, access to services, or the ease and cost of doing business and achieving compliance? Bugger all, one can safely say. So let’s call the ‘rural proofing policy’ what it actually is: a nice idea but completely lacking any real substance.
RURALNEWS TO ALL FARMERS, FOR ALL FARMERS
HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight ......................................... Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ....................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .................................. Ph 09 307 0399 davida@ruralnews.co.nz
“Don’t worry Edna – as soon as I can get the bank to let go the funds, the dealer set he’ll let you go home!”
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND Excuses For the first time in years, Rural News – and other media – were not invited to the launch of KPMG’s Agribusiness Agenda document at Fieldays. And it turns out that the myriad reasons (excuses!!*) given by KPMG’s PR team for the media blockade are even more creative than its accounting methods. Firstly, KPMG was nervous about how government ministers speaking at the event might view the presence of media. Well, actually, we got an invite from the Agriculture Minister’s office to hear his speech. Then the issue of ‘Chatham House’ rules was raised and – said KPMG – this meant no media. Oh dear, someone obviously forgot to tell the bean-counters that Chatham House rules in fact mean that media are welcome to attend, but not to report anything without the permission of individuals – which is common practice. *Definition of ‘excuse’: the skin of a reason stuffed with a lie.
Good point
Gone to blazers!
Surprise, surprise
A MATE of the Hound reckons that while Fish & Game (Bitch & Complain) is quick to point the finger at the farming community about water quality, it should be looking in its own backyard at the issue of plastic cartridge wadding. Your old mate’s informant says she and her family spend a great deal of time picking up beach plastic; they reckon the beaches north of the Waikato River mouth are littered year-round with plastic wadding from shotgun cartridges. The Waikato River and its hinterland are popular duck shooting areas and masses of this wadding is carried out to sea. It doesn’t take a rocket scientist to see the risk this stuff poses to seabirds and fish. This old mutt’s mate reckons the holierthan-thou types at F&G should be insisting plastic wadding be phased out – allow only cardboard. A fair point, you’d think.
THE HOUND notes this very special year for the Society Fieldays: celebrating the event’s 50th birthday. However, as usual, all its officials were not decked out in their birthday suits – the ubiquitous green blazers. A mate of yours truly reckoned the former green-blazer brigade looked ready to go to Augusta National for the Masters golf; or perhaps Disneyland, where the boss recently spent time, presumably seeking to raise the infotainment component of Fieldays. It’s a good thing the green jackets are gone because for some people those blazers were a potent symbol of power: estimates were that a green blazer could boost the ego and power of an individual wearer by about 100%.
YOUR OLD mate hears that animal rights advocates walked out of a recent Government-led hui after representatives of groups they oppose also attended the meeting. The hui was called to hear a raft of animal welfare concerns. However, it all went pear-shaped when the NZ Rodeo boss and a well-known pig farmer turned up. SAFE’s Hans Kriek admitted the animal activists threw their toys out of the cot and walked out when they saw the industry representatives attend the gathering. Apparently, the hui was the bright idea of nonentity and Associate Agriculture Minister Meke Whaitiri. Your old mate suggests she would be better advised to give up on such useless ideas – much like most of her government’s 100s of working groups – which seem to be ‘all hui and bugger-all dooey’.
PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 davef@ruralnews.co.nz Becky Williams ........................Ph 09 913 9634 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 021 842 220 Peter Burke .............................Ph 06 362 6319 Nigel Malthus ...................... Ph 021 164 4258 MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 or 07 824 1190 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628
NATIONAL SALES MANAGER: Stephen Pollard ....Ph 09 913 9637/021 963 166 stephenp@ruralnews.co.nz
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WAIKATO SALES REPRESENTATIVE: Ted Darley .......... Ph 07 854 6292/021 832 505 ted@ruralnews.co.nz
SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland Ph 03 337 3828/021 221 1994 kayes@ruralnews.co.nz
ABC audited circulation 80,580 as at 30/09/2017
WEBSITE PRODUCER: Jessica Wilson ........................ Ph 09 913 9621
Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // JUNE 19, 2018
OPINION 25
Don’t let them bring home your corpse TONY WATSON
WHEN THE Health and Safety at Work Act (HASWA) came into force two years ago there were misgivings and nervousness in the rural sector. However, farming leaders have truly stepped up to the plate, bringing the changes we are seeing today. That’s because the rural sector has started
aging, and the agricultural sector should take much of the credit for the improvement. The sector has worked hard to lift its health and safety performance since the launch of WorkSafe’s Safer Farms programme in 2015. Industry leaders have spearheaded this – Beef + Lamb NZ, DairyNZ, Federated Farmers and Horticulture NZ.
The sector has worked hard to lift its health and safety performance since the launch of WorkSafe’s Safer Farms programme in 2015. Industry leaders have spearheaded this – Beef + Lamb NZ, DairyNZ, Federated Farmers and Horticulture NZ. to accept that the cost to people onfarm is too high and change was necessary. While agricultural jobs don’t have the highest risk, farming suffers the highest numbers of deaths and injuries: 124 people died in the sector between 2011 and 2017. More change is still needed and we are seeing a real desire for that. There is growing recognition among farmers that good health and safety management is good business practice. Many farmers now accept this isn’t about compliance, or form-filling, but about making health and safety a priority, identifying and managing risks on their farms and communicating this well to people who need to know. Slowly, but surely, this appears to be reflected in accident statistics. Fewer farmers died last year than in any year since 2009. And in 2017 deaths were almost half those of the previous four years. The numbers injured and needing more than a week off work is still too high, but it’s also declining. Many things cause accidents on farms – weather for instance – and we can’t be complacent. Several people have died this year. However, the 2017 figures were encour-
For instance, almost 4000 farmers have now attended BLNZ’s health and safety workshops and DairyNZ has been running its Safety Sorted and FarmTune programmes. Farmers agree on three main things capable of lifting performance in health and safety – leadership, caring for people and risk management. Leadership is happening, and while NZ farmers have always cared strongly about their people and their communities, they now see there are better ways to take care of them. Risk management is the biggest factor in that better caring. The major cause of lost-time work injuries on farms are, notably, working with animals, slips, trips and falls, and lifting and handling. Farmers are recognising that managing these hazards is simply part of good business management, because having people off sick hits productivity. But there are critical risks -- the ones most likely to kill people. Farmers and all industry must focus more strongly on these; the big one is vehicles. Evaluation of ACC data from the past 17 years has shown that 80% of fatalities on farms involved vehicles
and machinery. Over the past three years that has edged closer to 90%. There is a perception that the people who die in farm vehicle accidents are the young and headstrong – ‘hooning’ at the wheel. In fact, over half the people killed are experienced and aged over 55
Tony Watson
-- the steady, the experienced, the parents and grandparents; yet too often they are the victims. Unfortunately, accidents happen, even to people who have done a job hundreds of times for years. This year, we want those people working with farmers to
help them identify and manage critical risks in vehicles and machinery. WorkSafe inspectors will talk with farmers about their vehicles during assessments. With others in the sector we’ll be helping develop operator protector devices and new and improved guidance and
standards. WorkSafe will also explore new and improved training and possible incentives. We ask for your continued support, and together we can drive further positive change. • Tony Watson is general manager of the agricultural leaders health and safety action group.
RURAL NEWS // JUNE 19, 2018
26 OPINION
The world is your contracting oyster DAVID KEAN
WHEN SOMEONE learns the skills to drive a big, expensive piece of farm machinery, a whole world of opportunity opens up. As but one example, my son is off to Western Australia again shortly, as our workload here in central Southland eases off with the arrival of autumn. Nicol will work for about eight weeks sowing wheat and barley in the bottom corner of that vast state. Last year he came back from a couple of months stint there with
enough cash in the bank to buy a good ute. The truth is that for him and a whole range of other New Zealanders, young or mature, the world is their contracting oyster. Everyone knows about the demand there is for NZ shearers around the world; now the same applies to operating rural contracting machinery. You can work your way around the world, season by season: Australia, Britain, Europe, Canada and the United States are just some of the places where there is work available for skilled
operators. I know of people who’re paying lump sums off their mortgages from their earnings overseas. And they’ve seen the world as well. It may not be the life for everyone; you work up to 12 hours a day and often live on a rural property. But the world-wide shortage is seeing competition for the resource. This year Nicol is having his flights paid for and food provided. Given there’s not much time to spend while they are working, that simply means more money in
Many young people work their way around the world helping out with seasonal agricultural contracting work in different countries including NZ.
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That’s important for a young person wanting to start saving capital towards setting themselves up as a rural contractor. When you can spend six-figure sums on machinery without the blink of an eye, a reasonable bank balance is going to be required. We are an industry dominated by operators in mid to late life. Young people with skills and capital are essential to keep our sector going. Rural contractors like myself also need these skilled people to operate our businesses. With nine units doing spraying work here in central Southland in the spring and summer
months, that requires several good operators. Every year, Rural Contractors NZ puts in Approval in Principle requests to Immigration NZ to import skilled operators: some 325 are sought for the coming spring/summer season. They will simply be doing the same thing as machinery operators do in going to Australia or elsewhere in NZ’s offseasons. I employ several NZers and would dearly like to employ more. They need high levels of self-motivation and selfmanagement, along with the coordination and focus required to drive a
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big machine during long days. We need a more holistic approach to managing such workers. For example, early last summer it got very dry in Southland and a lot of contractors ran out of work for staff, including imports. There needs to be more communication and flexibility to allow these young fellas to be able to move on if work dries up. The truth is they can go anywhere in the world with their skills. • David Kean, a Southland spraying contractor, is vice-president, Rural Contractors NZ. @rural_news facebook.com/ruralnews
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RURAL NEWS // JUNE 19, 2018
OPINION 27
Action plan speeds waterway efforts CHRIS ALLEN
THE GOOD Farming Practice Action Plan for Water Quality shows tangibly that the primary sector and local and central government intend to work together to enhance streams and rivers. The agriculture and horticulture industries are already a long way down the trail of environmental stewardship but the action plan is an important step towards achieving higher standards. The plan, launched by ministers David Parker and Damien O’Connor in Waikato on June 5, is the work of a governance group drawn from the primary sectors, regional councils and the minis-
tries of primary industries and environment. It sets 21 principles, targets and practices for nutrient and effluent management, water use and irrigation and waterway, land and soil protection. It’s all aimed at encouraging every farmer and grower to adopt good practice and put in place a farm environment plan to protect waterways on farms and in catchments. It also entails a system to monitor and report on progress. The principles and actions in the plan will not be new to many farmers, especially those who already have farm environment plans. But it’s a comprehensive checklist they can use, and for
farmers not up to speed on these things it can be their impetus and starting point. Earnings from the primary sector underpin the New Zealand economy and in a world where consumers increasingly demand
proof their food has been produced with high standards of animal and environmental care we need to continue to lead the way. • Chris Allen is Federated Farmers Environment spokesperson
Environment Minister David Parker and Agriculture Minister Damien O’Connor with Cambridge farmers Bill and Sue Garland at the launch of the ‘Good Farming Action Plan for Water Quality’.
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LETTERS TO THE EDITOR IS BIGGER REALLY BETTER? I RECENTLY read an article about a 64-year-old farmer who owns nine farms, milking 3000 cows on 1100ha. I couldn’t decide whether to be in awe of this guy or sad at the current state of dairy farming in New Zealand. The article would have better suited a business magazine you might read at the airport, rather than a farming paper. When I see “nine farms, 3000 cows and 1100ha” I am reminded of how many farming families have been lost. Back in the good old days – and they were good – you potentially had 15 different families as owners or sharemilkers making a living from that many cows. Rural communities, clubs and schools were thriving. Farming was a way of life, not just a business. Now, we generally see single people working on these big farms, just as a job. In the article, the farmer said the one major change he had noticed is the “downskilling and how the industry
is becoming more specialised”. It is more efficient on these big farms to have tractor drivers, milkers, herd managers and even irrigation managers. In the past, a farmer did all these tasks and more; that was what made farming attractive. A few years back, I was asked to come to MidCanterbury to manage a large dairy farm. My answer was easy to make: “No thanks”. I may have been the manager, but I would only have been managing labour, not farming. The title ‘farmer’ has lost all meaning. Next time you think about buying another farm to grow your empire, remember what attracted you to farming, and the opportunities others will lose to have that experience if farm sizes continue to grow. Perhaps buying up smaller farms and keeping them small is the answer or, if you’re only looking for a challenge, look outside your comfort zone. Andrew Parsons Waikato
BLAME HER! I’M SICK of hearing about anthropogenic global warming. When we look at the symptoms – unusually hot, unusually cold, usually wet places now uncommonly dry, etc – it’s easy to see what the cause is. Mother nature is menopausal. Julian Price , RD10D , Oamaru
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RURAL NEWS // JUNE 19, 2018
28 MANAGEMENT
Kiwifruit growers to wave the flag for NZ PAM TIPA pamelat@ruralnews.co.nz
NEW ZEALAND’S new national ambassadors for sustainable farming and growing, Mark and Catriona White, are
getting better-thanaverage production out of their kiwifruit operation using organic farming methods. As winners of the Gordon Stephenson Trophy in the Ballance
Farm Environment Awards, the Whites are marking 10 years spent so far on their quest for a better lifestyle for their family away from the city. They found it on a bare 5.85ha block near
Opotiki. Catriona’s family has been on the farm for four generations. It had been an organic dairy farm; now it is the successful Coastal Kiwis Orchard. The pair were “rapt”
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New national ambassadors for sustainabile farming, Catriona and Mark White.
to be the first horticulture business to win the NZ Farm Environment Trust (NZFET) national award. They may go to Europe for their overseas study tour. “When we went down to Wellington and met with all the other regional finalists they were amazing,” Catriona told Rural News. “The work they all were doing on their properties -- mainly dairy farming but also sheep and beef or whatever -it makes you proud to be a NZ farmer. They were doing amazing work so we were humbled to win the award because any one of them would have made an ambassador.” Catriona says Coastal Kiwis Orchard’s organic Green production roughly equals the average in conventional kiwifruit production. But they always go Kiwi Start so they crop their plants early to get a premium. In Gold kiwifruit they are well above average for conventional and organic and get the organic premium as well. The orchard, BioGro certified, has 3.19ha of Zespri Organic Green kiwifruit, producing in 2017 a total of 23,483 trays of Kiwi Start fruit. Zespri Organic SunGold (G3) is grown on 2.65ha, producing 38,362 trays. This production was achieved in a “challenging growing year” which included cyclones and a wet, windy autumn. Recently developed blocks of SunGold have come into production this season. Their plant loading is designed to enable them to produce year in, year out. The orchard uses no chemical pesticides or herbicides, instead mowing around the plants and letting grass grow a bit longer to provide living spaces
and food for fauna, and to retain soil moisture. Mowed grass is mulched. They practice ‘precision horticulture’ -- treating each vine separately. “For example, when we prune we don’t necessarily have the same rules for every plant in every block. So we might prune different blocks differently or a couple of rows in a block differently. If one area of the block is more exposed to the wind we might prune and crop those rows differently from the rest of the block. Although at first they knew little about kiwifruit, they did most of the physical development work themselves, keeping costs down and learning by their mistakes. Mark also did a National Certificate in Horticulture. The farm was already organic dairy but they would have chosen to go organic anyway, says Catriona. “Mark and I are working in the orchard; our children are young so we wanted a safe environment to work in and to produce safe food. Mark, formerly a manager at NZ Post for 10 years, went to Lincoln University, graduating with a masters in marketing and management. Catriona had been a primary teacher but was fulltime looking after their young children when they started. They wanted something they could both work on. They chose kiwifruit because having bought only 13ha they had to do something in horticulture and there was a lot of kiwifruit in the area. Her father already grew some, as did the neighbours, so the soil and climate were right for kiwifruit.
RURAL NEWS // JUNE 19, 2018
30 MANAGEMENT
Conversion all set to go AFTER FIFTEEN years of planning and red tape, a controversial large dairy conversion in the Mackenzie Basin is expected to be up and running next
SUPPLIED/GREENPEACE
underway on Simons Pass station. Owner Murray Valentine, a Dunedin accountant with other large agricultural and commercial interests, says the main irrigation pipeline
season, despite environmentalists’ ongoing opposition. Construction of the first of three planned dairy shes, and the main pipeline for an extensive irrigation system is now well
NIGEL MALTHUS
A still from Greenpeace’s drone footage, looking north, shows the main irrigation pipeline for Simons Pass running alongside Lake Pukaki from the Tekapo Canal. The line will be buried.
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is now 50-60% complete and irrigation will start late October. Valentine has since 2003 worked on the various consenting requirements of ECan, the Mackenzie District Council and LINZ; and after six years effort he has gained Environment Court agreement; a large part of the property will go into a conservation area. This is why he doesn’t hide his frustration that Simons Pass is now the focus of a fast-growing online Greenpeace petition calling on the government to prohibit new dairy conversions. Greenpeace’s accompanying press release describes Simons Pass as “a major dairy incursion into wilderness country” and “a massive dairy operation for up to 15,000 cows”. Valentine says he has never had a plan to put 15,000 dairy cows on the farm. He does have a discharge consent for effluent for up to 15,000 cows but points out that like all consents it comes with the obligation to manage nutrient discharge using Overseer. “So we haven’t got an open slather to put 15,000 cows on the farm and just lift our fingers to everybody. “Saying that we’re doing 15,000 is a much better publicity thing than saying that we’ve got to complete an Overseer report, work out our nutrient discharge, and that will determine our stocking rate. That’s not what people want to hear if they’re on the Greenpeace side.” The property is 9600ha -- about 5500ha in pastoral lease and the balance freehold. It straddles SH8 just south of Lake Pukaki and is bounded by the Pukaki River to the west and the Mary Range to the east.
A buried pipeline will bring water 8km from the Tekapo canal into the northern part of the farm and to two neighbouring farms. The main water flow then goes under the highway and down the middle of the Pukaki flats, which will be the largest part of the irrigated area. Valentine says monthly water monitoring of 10 sites around the station, the Tekapo River and Maryburn Stream shows the project is unlikely, “certainly in the initial stages,” to have any impact on the waterways and groundwater. He said Overseer calculations now being worked on envisage a maximum of about 5500 dairy cows, up to 8000 animals in a beef finishing operation and 3000 to 4000 sheep. The development will take about seven years because the irrigation consents require it to be done incrementally. Eventually there will be three dairy sheds, each handling 1800 to 2000 cows. The farm will be selfcontained, producing all its own stock, including 1000 to 1500 replacement dairy and 4000 beef animals a year. It will also produce all its own feed on the irrigated land. Partly because of the restrictions placed on the development – including Mackenzie District Council rules against building staff accommodation – the farm looks like becoming among the most modern in the country. Driverless electric tractors, aerial drones and robotic milkers are being considered. “It’s fortunate but it’s unfortunate. When we made the application to the commissioners for the consents we [reckoned on] probably 120 jobs on the farm. I [now] TO PAGE 31
RURAL NEWS // JUNE 19, 2018
MANAGEMENT 31
Massive dryland recovery priorities for 2018. On its website it describes Simons Pass as “a 15,000 cow dairy development” and says it will investigate any further necessary consents, and litigate “where necessary to try to stop it”. Valentine says neither EDS nor Greenpeace chose to be part of the Environment Court process. “I’ve spent a lot of money; I’ve done a lot of planning; I’ve worked on the things we’ll do. And a month before we get into finally executing our proposal they come along and say ‘you shouldn’t be doing it’.” “We could have accommodated them if they’d had some different views to Forest and Bird, Mackenzie
A map of Simons Pass Station’s ‘landscape values’ prepared by DoC for the LINZ tenure review. SUPPLIED/LINZ
sent. We have agreed to set aside almost 40% of our farm for conservation areas.” It is made up of a 2500ha block including a 600m setback from the highway that will not be cultivated or farmed. He said it is a substantial investment in ecology and conservation. “We are going to take all the stock off that. We are required to rabbit fence it to control the rabbits and wilding trees and the other pests. That
offer, for conservation, is a pretty serious part of what we’re doing.” Valentine said there is a risk that once that land is destocked, wilding plants and heiracium may come up, but that was the deal he agreed to with the organisations that had appealed the consent. “We’re happy with that. We’ll do what we have to do with that.” Meanwhile the Environmental Defence Society has also stepped in, declaring the Mackenzie one of its
Guardians and Fish and Game and Meridian and Genesis who all were part of the legal appeal and all contributed to the work with the Environment Court.” Valentine says the dryland recovery area will be a massive undertaking. “You don’t see that being mentioned, but you do see the 15,000 cows -- which we’re not going to do.” Meanwhile, the property is also going through tenure review in a process that may take a few more years. Valentine says it will have no effect on the conversion project except that if it goes through he would give up a further 1260ha to the Crown for conservation.
All set to go... FROM PAGE 30
reckon we might have 60,” says Valentine. Technology such as virtual fencing with GPS-controlled collars on the stock is “very high on the capex list.” The key thing is getting the farm as efficient as possible, he says. “It’s a large property if you have to drive someone 10km to the end of the farm. Better to send a drone down, have a look, then come back.”
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ASKED WHY he didn’t just keep running it as the traditional dry highcountry Merino station it was, Murray Valentine points out that it made only $50 per stock unit. What little rain it got was usually not in the summer season when grass growth was needed for production. But by irrigating at 5mm/day for 120 days, November to March, dry matter production could be lifted from around 1t/ ha to 20t/ha. “Okay, I could just sit there and do nothing, but that’s not my style,” says Valentine. “The property is primarily bare dirt, heiracium, and probably 20% exotic grasses and clover and 1% native plants. It is not a property you can do anything with unless you develop it. “It is not an iconic landscape. It is a very flat piece of land you generally can’t see from the road. And in the summer, with the wind, it just blows all the topsoil off to the Hakataramea.” Valentine emphasises the trade-off he agreed to -- when the irrigation consents were appealed to the Environment Court -- to set aside 2550ha for what is called a dryland recovery area. “That’s part of our irrigation con-
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RURAL NEWS // JUNE 19, 2018
32 ANIMAL HEALTH
No nightmare over M.bovis – expert FARMERS NEED TO CHANGE THE WAY THEY FARM
PETER BURKE peterb@ruralnews.co.nz
MSD_Nilvax_Strip_RN_100x265_01
FARMERS SHOULD not be having nightmares about Mycoplasma bovis, says a technical expert. Associate-professor Richard Laven, Massey University, is a veterinarian widely experienced in dealing with the disease in the UK, in particular Scotland where he headed a laboratory specialising in the surveillance of diseases in farm animals, including M.bovis. He believes the Government has correctly decided to try to eradicate the disease and has a 90 - 95% probability of succeeding, notably because all the infections are the same strain of the bacteria and MPI appears to have identified a farm that is either the origin of the M.bovis outbreak or is close to it. Laven says if there were many farms likely to have been where the disease first landed in New Zealand, the task of eradication would be made much harder. But to date this hasn’t been so; all the incidences of M.bovis appear to be traceable back to one source. According to Laven, success in eradicating M.bovis will largely depend on farmers honestly coming forward and saying they may have the disease or have animals on their farm which trace back to the suspected, but as yet unproven, source -- the Zeestraten farms in Southland. “There is the possibility that people will be reluctant to come forward, so getting buy-in from Federated Farmers and other groups is vital,” says Laven. “There are complaints that only one cow on a farm was infected with M.bovis, but that’s not true. The reality is if one cow was found to be infected there may be 70 or 80 others that weren’t found. “You need farmer buy-in. Farmers have to say ‘I’m going to lose my cows for the benefit of NZ Inc; that’s the important farmer attitude. You need people who are willing to take one for the team.” Laven says he fully appreciates that NAIT is a messy system that needs to
Richard Laven, an M.bovis expert based at Massey University.
be improved, but that a lot of time has been lost in detecting M.bovis because animals could not be easily tracked down. The sale of calves for cash, with no records kept, has been a problem. In NZ’s favour is its being an island and having a largely outdoor farming system. Indoor housing systems such as in Europe where animals are kept close together allow disease to spread faster, Laven says. For example, in NZ <1% of sick calves have pneumonia, whereas in Europe pneumonia accounts for 20-30% of disease in calves. The same could apply to M.bovis in NZ. Laven says he suspects the use of ‘waste milk’ will prove to have been significant in the spread of M.bovis in NZ. NZ is the first country to try to eradicate M. bovis. Australia, where only 4% of herds are infected, could attempt eradication but there is less pressure for that as the disease has been there at least 40 years. Laven notes that Northern Ireland was also free of M.bovis until Britain joined the EU, but farmers fell to the temptation to buy cattle from Europe and with those cows came M.bovis. It spread to the Republic of Ireland.
NEW ZEALAND farmers must change the way they farm to keep their farms free of M.bovi, says Richard Laven. Many changes are quite simple, e.g. pasteurising colostrum and not using service bulls because farmers can’t be sure of the health status of such animals. “Treating the farm as an island and having a very strict biosecurity process in place is essential. We are talking of a closed herd system which is really important. But do not get too paranoid about people coming onto your farm. “Make sure that they are clean and have a foot bath so they can disinfect their clean boots. Don’t let people come on in dirty trucks but also don’t have nightmares about it,” he says. Laven says if a farmer can’t operate a closed systems they should minimise their risk by being very careful when purchasing any stock. He says they should do their homework on the farms and people they are buying animals from to make sure they don’t get infected stock. He says farmers should also consider double fencing to keep stock from neighbouring farms at a safe distance. Laven says there is reason for optimism about the decision to move to phased eradication of M bovis in NZ. He says that while a lot of cattle will likely have to be slaughtered, in the wider scheme of things, wiping out M. bovis will be in the long term interests of the dairy and beef industries and New Zealand as a whole.
Farmers will need to change the way they do things such as feeding pasturised hospital milk and colostrum.
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RURAL NEWS // JUNE 19, 2018
34 ANIMAL HEALTH
NCD researcher wins grant EARLY DETECTION of neonatal calf diarrhoea (NCD) is top of mind for the winner of the National Fieldays Sir Don Llewellyn Scholarship. Waikato University doctoral student Gemma Lowe’s grant of $22,000 will go towards her research into the use of infrared thermography (IRT) for the early disease detection of NCD. She says NCD typically affects calves in their first month, and the big challenge with NCD is that by the time it is diagnosed, based on clinical signs, much damage has already occurred to an animal’s intestines; in severe cases it’s often too late to save it. IRT is a non-invasive method of detecting radiated heat, so by assessing the thermal responses of different anatomical regions in the calves in response to disease, Lowe will be investigating the suitability of IRT as a non-invasive, automated method for early disease detection. “The aim of this research is to develop an automated system which incorporates IRT to mon-
Gemma Lowe
itor animal health and welfare to enable early detection of this disease, before clinical signs are evident,” Lowe says. “A system like this would hugely benefit farmers, enabling diseased animals to be isolated to prevent NCD spread and enabling treatments to be administered sooner than is now possible based on clinical signs.” Lowe is also investigating the
suitability of other physiological and behavioural responses (lying, feeding and drinking behaviours, and respiration rate) for use in the automated system. The Fieldays scholarship was founded to help University of Waikato students do research with a specific focus on the agricultural sector. NZ National Fieldays Society president Peter Carr says they’re
delighted to award Lowe the scholarship, whose work “shows a dedication to the advancement of agriculture and the welfare of animals and farmers battling such diseases”. Lowe has so far done four different trials investigating the suitability of IRT and other physiological and behavioural responses as indicators for the early detection of NCD. “I’m analysing a lot of video data collected during the trials. I’ve already published and presented two papers on my research, and will be presenting more data later this year in Canada at the 2018 Congress of the International Society for Applied Ethology (ISAE): Ethology for Health and Welfare.” Lowe, long interested in animal welfare, did her bachelor degree study at Waikato, where she completed two student placements on research of animal behaviour and welfare. She joined InterAg, Hamilton, in 2015 to complete a BSc Honours, and there decided to enrol in the PhD studies.
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RURAL NEWS // JUNE 19, 2018
ANIMAL HEALTH 35
Capsules help get ewes over line late in pregnancy RISING PROSPECTS for sheepmeat make it worth spending money on flock health, says animal health company Boehringer Ingelheim. It markets Bionic longacting worm killing capsules, now in their twelfth year. “These are a viable option for farmers working to capitalise on ewe health and good feed supplies heading into the lambing season,” says Richard Sides, Boehringer Ingelheim technical veterinarian. “Farmers, veterinarians and researchers have amassed lots of trial and field evidence that shows the long-acting, twinactive Bionic capsules can play a valuable role in ewe health.” He says the combination of the product’s two key actives abamectin and albendazole into a tablet form represent the single most significant development in the capsule’s technology. With a focus on using drenches responsibly and delaying the risk of resistance developing, vets are recommending a targeted approach to using Bionic, i.e. administering capsules to the more vulnerable stock classes within a flock. Sides says one
approach may be to target in-lamb hoggets and twinbearing ewes to boost their immune response to parasite loadings at one of their most stressful times of year. “The evidence is that they tend to have better condition score, fewer dags and heavier lambs,” he says. And Sides reckons high country farmers, who have less control over feed supply to pregnant ewes and face more extreme weather, may also opt for the capsules. Recent trial work in ewes (not selected for condition-score) has shown Bionic treated ewes were 3.2kg heavier on average at weaning and gave an average 3.1kg more lamb liveweight weaned per treated ewe. The addition of cobalt also maximises the amount of vitamin B12 produced by the ewe, and in turn fed to the lamb via her milk. The selenium dose in the capsule is sufficient to last for up to 250 days. Boehringer Ingelheim claims the addition of cobalt and selenium to Bionic has also benefitted clients’ flock health. “A lamb can only receive cobalt from three sources – foetal supply, colostrum and on-going
milk supply,” the company explains. “A cobalt treated ewe therefore assures a lamb’s supply is also good through to as late as March.” Sides says responsible use of Bionic can include identifying “refugia” animals in the flock that do not get treated, helping maintain a reservoir of
untreated parasites within the farm population. “Faecal egg counts 60-80 days post treatment also help ensure there is no egg leakage post-treatment.” He recommends that farmers talk to their vet, compiling a comprehensive, considered worm control programme that
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Good prospects for sheepmeat make it worth spending money on flock health.
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RURAL NEWS // JUNE 19, 2018
36 MACHINERY & PRODUCTS
JCB’s new Fastrac 8330 exactly that MARK DANIEL markd@ruralnews.co.nz
JCB’S NEW Fastrac 8330 is now officially the world’s fastest production tractor, capable of a legal road speed of 70km/h. Sporting sharp new styling and a new 335hp Tier 4 engine, it also has continuously variable transmission, all-round suspension, hydrostatic dual steering, four-wheel disc brakes with ABS and the maker’s deluxe Command Plus cab. The NZ distributor of JCB says the new flagship of the 25-year-old Fastrac range continues to
rewrite the rule books. “The 8330 is the fastest, most powerful and most versatile tractor yet released by JCB,” says CLAAS Harvest Centre product manager – JCB, Steve Gorman. “Everything about it is designed to maximise productivity, whether it’s heavy cultivation at 7km/h, GPS-guided spraying and spreading operations at 40km/h or hauling fully laden spreaders, sprayers and wagons at road speeds up to 70km/h.” An 8.4L AGCO sixcylinder engine with twin turbochargers deliv-
ers 14% more power and 10% more torque. Rated power is 335hp, rising to 348hp under full load, and peak torque is 1440 Nm at 1500 rpm, providing the ability to ‘hang on’ as conditions become more challenging. Its two-range continuously variable transmission has six modes, including an ‘active traction’ function to maintain grip during heavy draft work (with information drawn from a radar speed sensor), hydraulics position control and cruise control to manipulate engine torque and maintain traction for the
The 8330 is the fastest, most powerful and most versatile tractor released by JCB.
most cost-efficient performance. An improved cruise control function ensures optimum use of power and torque, with seamless acceleration and power delivery, and ultrafine speed control to suit every operation; the Powershift mode has 15 speeds for field work and 10 for road use. A new hydrostatic
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dual-steering system uses two hydrostatic systems and an advanced control valve to continuously monitor pressures and flows in both systems, and it offers failsafe steering, even in the event of hydraulic or engine failure. The selectable ‘rapid steer’ function reduces the number of turns lockto-lock to just two for fast and easy headland turns less than 10km/h. The Fastrac 8330 has 50:50 weight distribution over both axles, which can be set to achieve a three-metre track width for controlled traffic and row crop applications. An active rear suspension system quickly responds to the weight of rear- or deck-mounted implements to maintain stability, and the robust
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demands of implements such as air drills. The mid-mounted Command Plus cab is said to be the largest on the market; it has forward-raked ‘A’ pillars to allow bigger, easy-access doors, deep door glass, a near-vertical windscreen and rear three quarter-opening windows to ensure good all-round visibility. The high-spec air seat can swivel up to 50 degrees right and 20 degrees left, allowing the operator to monitor rearmounted or trailed equipment. Creature comforts include climate control air conditioning and an optional coolbox and roof window. @rural_news facebook.com/ruralnews
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coil spring and damper suspension on the front axle contributes to the machine’s ride. Stopping is reckoned 15% quicker than any conventional tractor, achieved by external disc brakes and powerful twin callipers on all four wheels, and an ABS antilock system. A purpose-designed chassis provides several options for mounting implements: the load deck has 2.5 tonnes capacity, the rear hitch 10,000kg and the optional front linkage system 3500kg lift capacity. A separate hydraulic circuit with six double-acting electric spool valves provides a flow rate of up to 140L/ min, ideal for the high
9/04/18 12:16 PM
RURAL NEWS // JUNE 19, 2018
MACHINERY & PRODUCTS 37
Side-by-side range extended MARK DANIEL markd@ruralnews.co.nz
POLARIS HAS added a new flagship model (XP1000) to its Ranger series of utility side-bysides. A ProStar 1000 engine developing 82hp is mated with a new clutch and redesigned driveline; the clutch is a large-ratio unit for low-speed drivability, and the driveline uses the strongest belt ever fitted to a Ranger. Redesigned underhood air intakes and a new clutch cover increase the air flow for cooler, longer belt life, and improved geometry produces less friction for increased efficiency and a quieter ride. VersaTrac (turf mode) enables the rear wheels to rotate independently, allowing tighter turns and reduced tearing of delicate surfaces such as fine turf or compacted pathways. Using a dash switch, the driver can toggle from turf mode to 2WD (locked rear diff) to all wheel drive. A new one-piece chassis increases stiffness and reduces flexing, making the machine stronger and more durable. The ride is enhanced by 28cm of suspension travel, and 27-inch tyres fitted to cast aluminium rims give greater height and 33cm of ground clearance -- an increase of 8%. For precise handling, the vehicle has a reduced steering ratio that gives a tighter turning radius;
and a new front sway bar offers a more responsive ride and improved manoeuvrability. A new distinctive grille behind an enlarged front bumper is designed for added protection, and a new full-body skid plate provides extra protection and durability. At the rear, the cargo box has 11.5% more volume, welded steel corners for stiffness, lockand-ride rails, eight stake pockets, moulded in-box divider slots and large, reinforced D-rings. The Ranger XP 1000 has 1134kg of towing capacity. Standard on all Ranger XP 1000 vehicles, the Polaris engine braking system (active descent control or ADC) ensures smooth, controlled descents on steep inclines with or without a load. ADC uses an electromagnetic coil, applying a magnetic force to a bidirectional overrunning clutch, that works with a pair of plates connected to the output hub to the front wheels and crown wheel with lock-up creating front-wheel-induced engine braking. Working in tandem with the rearwheel EBS system, this achieves 4-wheel engine braking. The vehicle also has three-mode throttle control -- performance, standard and work modes -- that control the power. Getting in and out is easier with 12.7cm more clearance, and there is more legroom and more
comfortable seats. A user-friendly dash layout includes a digital/analogue gauge and four pre-wired accessory switch locations for easier accessory fitment. A new flip-up passenger seat offers more space for buckets or the farm dog, and six cup holders should keep everyone happy.
Polaris has added to its Ranger Series of utility side-by-sides with the arrival of the new XP1000.
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RURAL NEWS // JUNE 19, 2018
38 MACHINERY & PRODUCTS – WORKSAFE
You might have heard that noise could be a problem MARK DANIEL markd@ruralnews.co.nz
THERE CAN’T be many of us who’ve got into cars, trucks or tractors that have been “borrowed” by sons, daughters, or younger staff, turned on the ignition, and promptly had all the wax blasted out of our ears. Whilst mildly annoying, the impact shouldn’t be underestimated, as exposure to noise, particularly in the workplace, can lead to permanent damage to workers’ hearing. Noise Induced Hearing Loss (NIHL) affects peoples’ lives on a personal and social level, whilst in the work arena, it can lead to a cut in productivity, alongside
increased risk of accident or injury. Studies have shown that people on farms are at much greater risk than the general population, not least because of noise from animals, plant and machinery. As with any employer, farmers have a responsibility to manage exposure to noise, while workers should also take care to follow instructions and wear protective equipment to manage their exposure. Measured in decibels (dB), day to day life on the farm means it’s easy to overlook likely sources of noise, that might be damaging hearing. As an example, riding a quad bike typically creates around 86dB, driving older or cab-less trac-
tors sees a reading of 95-100dB, and an irrigation pump typically produces 100dB If individuals are exposed to an eighthour average noise level of 85dB, or peak noise levels of 140dB, management are obliged to use a plan to reduce that noise and reduce the exposure. From a practical point of view, excessive noise might mean having to raise one’s voice to communicate with another person, just one metre away. Much can be done to reduce noise, such as routinely servicing machinery or plant, replacing worn parts, or simply tightening loose panels or fittings. When replacing items always look for
an item that does the job, but also has a lower dB rating. Likewise, don’t fall into the trap that “it must have an engine and be mobile to be noisy.” For example, milking sheds with cows, gates opening and closing, vacuum pump and milk transfer systems can be particularly noisy environs. If this is the case, consider fitting noise absorbing wall panels, repositioning and enclosing vacuum pumps, or pointing exhaust outlets away from the building. If noise cannot be eliminated or reduced at source, employers should provide, and workers should use ear plugs and ear-muffs, while also making sure that users understand how to use
them correctly. Another management tool might be the revision of work rosters, so the same employee is not exposed continuously to a potential noise source, while also considering the range of mobile phone
apps that feature sound level meters. From a worker’s point of view, speak up if you believe you are being exposed to a noise, or any other risk, otherwise you risk being the one, at a summer barbeque or
family event, thinking “I can nearly hear the conversation, but I’m not sure enough to take part.” • For further information visit: Preventing noiseinduced hearing loss on farms – good practice guidelines
Deck crew on aircraft carriers often work up to 14 hour days in close proximity to aircraft generating 140dB or more upon take-off – levels that cause instant hearing damage to unprotected ears. Earplugs and earmuffs are not enough to protect hearing at these levels due to bone-conduction – literally vibrations through the skull. The US Navy developed acoustically-sealed helmets to protect the hearing of their crew. The recommended workplace noise average in New Zealand is under 85dB. A chainsaw typically generates noise of 119dB and is an obvious situation demanding hearing protection, however there are plenty of other less obvious examples. An angle grinder generates 98dB, irrigation pumps average 100dB and old or cab-less tractor can generate 95-100dB. [Worksafe NZ data]
RURAL NEWS // JUNE 19, 2018
MACHINERY & PRODUCTS 39
JD goes high-tech in SP sprayers MARK DANIEL markd@ruralnews.co.nz
IN THE northern hemisphere, John Deere has released details of its new R4050i self-propelled sprayer, with a new PowrSpray control system, a larger 5000L tank and an “ultra-lightweight but extremely strong” carbonfibre boom. It is powered by JD’s PowerTech PSS engine of 6.8L, developing 235hp at rated speed and climbing to 255hp at maximum output. The unit is also equipped with the company’s GreenStar 3 touch screen display that supports FieldDoc spray documentation and has full ISOBUS compatibility. Other standard equipment includes a multi-function control lever, electronic sprayer control -aptly named Solution Command
The JD R4050i’s boom is said to be much lighter than steel or aluminium, but at least five times stromger than a steel equivalent.
to oversee all functions – and a 50L PowrFill induction system. The new PowrSpray system uses a dual circuit layout fed by two pumps, and a new waterproof keypad and digital display at the operator station aids control of the system. The boom’s carbon-fibre technology stems from JD’s recent purchase of King Agro, a specialist manufacturer of carbon-fibre
products. On the R4050i, the boom is said to be much lighter than steel or aluminium, but at least five times stronger than a steel equivalent would be. It can flex in use, avoiding the stress that would typically show up as cracks in metal units. It comes in 18 or 36m operating widths. The manufacturer claims the
THE ALL NEW
carbon-fibre composition can withstand high dynamic loads when used for application at 20 - 30km/h. LED boom lights extend its operation in low-light conditions or at night. Rural News understands the machine will be available in NZ later in the year. @rural_news
FLOWER POWER FOR TYRES THE SEARCH for alternative raw materials makes it unsurprising that Indian tyre manufacturer BKT (Balkrishna Industries Ltd) is developing an alternative tohevea/ para rubber tree that supplies most of the world’s demand. The search began in the early 20th century when the The Mexican Rubber Company exported 42,000 tonnes of guayule rubber to the US which at the start of World War 2 set up the Emergency Rubber Project, fearing the loss of supplies from Asia. Today’s research, centres on dandelions, not the common garden variety but taraxacum-kok-soghyz (TKS) or Russian dandelion, a native of Kazakhstan, that produces roots of 25g and has a latex content of 15%. To exploit the potential of TKS, BKT has a joint research venture with US biotech company Kultevat to find ways to create new compounds to go with traditional rubber blends, or replace them. The dandelion has the highest latex content, grows year-round and thrives in moderate climates. There will be several sample deliveries in 2018 and a 1 tonne of a stabilised product to BKT in India by October 2019. An R&D centre, the Suresh Poddar Innovation Hub, will look at the material’s physical and chemical composition, and test it for durability, cut resistance and tensile strength. Sales are expected to begin in late 2019 or early 2020. – Mark Daniel
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